Tokenomics

DON Overview

The DON token is the governance token for the Donkey Finance DON , which oversees the entire Donkey Finances ecosystem. It was officially launched on (mm/year)

Supply

The total supply of 3.03 billion DON is allocated as follows:

• 62% to community liquidity providers

• 30% to shareholders (team and investors), subject to a 2-4 year vesting period

• 5% to the community reserve

• 3% to employees with a 2-year vesting period

Community	1,878,787,881
Core Team	800,961,153
Investors	108,129,756
Employees	90,909,091
Reserve	151,515,152

At launch, the initial supply was approximately 1.3 billion DON (about 43% of the total), distributed as:

• 5% to pre-DON liquidity providers, with a 1-year vesting period

• 30% to shareholders (team and investors), with a 2-4 year vesting period

• 3% to employees, with a 2-year vesting period

• 5% to the community reserve

The circulating supply at launch was zero, and the initial release rate was around 2 million DON per day.

DON inflation, driven by community emissions for providing liquidity, started at 274 million tokens per year in (year). This emission rate decreases by roughly 16% each year.

See the Supply & Distribution page for more detailed information.

Utility

DON has four primary use cases, many of which require locked DON (veDON):

1. Incentivizing Liquidity Providers: DON rewards are distributed to liquidity providers to encourage liquidity provision in pools and lending markets.

2. Boosting DON Rewards: Liquidity providers can increase their DON rewards by up to 2.5x by holding veDON.

3. Governance Participation: Holding veDON allows users to participate in governance, including voting on DON emissions (gauge weight votes).

4. Fee Collection: Users holding veDON can collect a portion of the fees generated from swaps and loans on DonkeyFinances.

veDON stands for vote-escrowed DON, which refers to DON tokens locked for voting within the DonkeyFinances. Terms like locked DON, vote-locked DON, and vote-escrowed DON are used interchangeably across the ecosystem to describe veDON.

For instructions on how to lock DON tokens, refer to the locking guide, or for more detailed information about veDON, visit the veDON page.