Full Liquity tokenomics breakdown: LQTY token allocation, vesting schedule, supply distribution, unlock dates, and investor terms.
Key questions and answers about Liquity tokenomics.
Liquity token distribution allocates 100,000,000 LQTY across 4 primary stakeholder groups:
LQTY uses variable cliffs and vesting schedules that change depending on the allocation:
9.1% of the total supply (9,100,000 LQTY) is unlocked at TGE, with the tokens split between Foundation and Community.
Liquity has a total supply of 100,000,000 LQTY, of which 36,978,976 LQTY (37% of total) is currently circulating.
Total length of the full Liquity emission schedule is 40 years, with 9.87% released in Year 1, while the remaining 56.22% is released over the following 39 years.
34.4% of the Liquity supply is allocated to community focused pools such as Community and Service providers.
Liquity is a decentralized borrowing protocol that enables users to access low-interest loans backed by Ethereum as collateral. The platform is entirely immutable and governance-free, ensuring ultimate decentralization and user-centricity. At the core of Liquity's ecosystem is the $LQTY token, which serves as the protocol's utility and secondary reward token. The Liquity platform allows users to deposit ETH to borrow its native stablecoin, LUSD, against their collateral. Borrowers benefit from an innovative monetary algorithm, offering a 0% interest rate and avoiding typical drawbacks like governance-driven fee adjustments. Loans are secured through a minimum collateralization ratio of 110%, ensuring system stability even under volatile market conditions. $LQTY plays a critical role in incentivizing active users. It is distributed as rewards to users who stake LUSD in the Stability Pool or provide front-end services for the protocol. Holders of $LQTY can stake their tokens to earn a share of fees generated within the system, fostering active participation and further decentralizing liquidity operations. With a fixed supply cap of 100 million tokens, $LQTY incorporates scarcity to enhance its long-term value. One of Liquity's standout features is its fully automated and governance-free design. The protocol operates without reliance on centralized decision-making, audits, or upgrades, establishing a highly predictable and transparent borrowing environment. Combined with its decentralized front-end operators, the platform empowers a permissionless financial ecosystem. Liquidity's market positioning as an immutable, low-cost global borrowing solution aligns with the rising demand for decentralized alternatives to traditional financial systems. Its focus on sustainability, decentralized ownership, and user-focused incentives makes Liquity, and its $LQTY tokenomics, an innovative choice for DeFi enthusiasts and long-term users of the Ethereum blockchain.