> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vita.finance/llms.txt
> Use this file to discover all available pages before exploring further.
# Vita Tokenomics
> Understanding the dual-token system and sustainable economics of Vita DEX
Discover how the carefully designed dual-token system balances immediate liquidity needs with long-term protocol sustainability. By separating liquid trading tokens (VITA) from governance tokens (xVITA), you benefit from aligned incentives across all participant types.
**Key Innovation**: The session-based reward system ensures you receive fair distribution based on actual participation time, not snapshot gaming.
## The Dual-Token System
**Liquid Trading Token**
• Freely tradeable on markets\
• Used for liquidity provision\
• 20% of session rewards\
• Trading fee rebates\
• 18 decimals precision
**Governance & Rewards**
• Non-transferable (locked)\
• 1:1 governance voting power\
• 80% of session rewards\
• Revenue sharing rights\
• 18 decimals precision
## Token Distribution
### Total Supply: 100,000,000 VITA
| Allocation | Amount | Purpose |
| -------------------- | ------ | ----------------- |
| **Liquidity Mining** | 60% | Community rewards |
| **Team** | 20% | 4-year vesting |
| **Treasury** | 10% | DAO controlled |
| **Genesis Pool** | 5% | Initial liquidity |
| **Airdrop** | 5% | Early users |
## Emission Schedule
**Front-Loaded Distribution**
The emission schedule bootstraps liquidity early while maintaining long-term sustainability:
| Period | Emission | Percentage |
| ----------------- | -------- | ---------- |
| Launch (Pre-mint) | 20M VITA | 20% |
| Year 1 | 24M VITA | 24% |
| Year 2 | 20M VITA | 20% |
| Year 3 | 12M VITA | 12% |
| Year 4 | 8M VITA | 8% |
| Reserve | 16M VITA | 16% |
**Liquidity Mining (60M VITA)**
* AMM LP Rewards: 50M VITA
* xVITA Staking: 10M VITA
**Team Allocation (20M VITA)**
* Cliff Period: 1 year
* Vesting Duration: 3 years linear
* Monthly Unlock: \~555,555 VITA
## Trading Fee Distribution
All trading fees flow through the ecosystem based on the protocol's configurable fee rates. The default 0.3% fee is distributed through protocol and community vaults.
AMM fees contribute to xVITA staker rewards through the protocol's fee distribution system.
## Revenue Streams
### AMM Revenue
• 0.3% default swap fee\
• Consistent volume from retail\
• Benefits from aggregators
AMM revenue contributes to protocol fees through configurable parameters.
## Conversion Mechanisms
**Instant Conversion**
| Parameter | Value |
| --------- | -------------------- |
| Rate | 1:1 conversion ratio |
| Time | Immediate |
| Result | Locked xVITA tokens |
| Benefits | Governance + rewards |
```
Example: 1,000 VITA → 1,000 xVITA (instant)
```
Use ft\_transfer\_call with `{"convert": {}}` message format
**Vesting Schedule**
Choose your redemption period:
| Period | Return Rate |
| ----------- | -------------------------- |
| 15 days | 50% returned (50% penalty) |
| 30-180 days | Linear increase |
| 180 days | 100% returned (no penalty) |
**Formula:**
```
base (50%) + (period - 15 days) / 165 days × remaining (50%)
```
**Standard Unstaking**
| Parameter | Value |
| --------------- | ---------------------- |
| Cooldown | 15 days fixed |
| Return | 100% of xVITA |
| During cooldown | No rewards earned |
| Cancellable | Yes, before completion |
Once unstaking begins, your xVITA stops earning rewards immediately.
## Value Accrual Mechanisms
Trading fees from AMM flow to xVITA stakers through protocol and community vaults.
Liquidity providers earn the majority of trading fees, ensuring deep liquidity across markets.
## Governance Power
### xVITA Voting Rights
**1:1**\
Voting Power\
1 xVITA = 1 vote
**10K**\
Proposal Threshold\
Min xVITA to propose
**4%**\
Quorum\
Of total supply
### Governance Scope
**Protocol Parameters:**
* Fee rate adjustments
* New pool creation
* Treasury allocation
* Protocol upgrades
* Emission adjustments
* Partnership approvals
* Trading parameters
## Boosting System
### Advanced Boost Mechanics
xVITA provides sophisticated boost mechanics for farming rewards:
**xVITA Boost:** 1.0x to 2.5x multiplier
Boost calculation uses a complex sigmoid function based on your share of total boost tokens
## Why This Model Works
You benefit from a model that combines:
* Real yield from trading fees
* Time-locked governance tokens
* Front-loaded but decreasing emissions
This creates a sustainable ecosystem where early participants are rewarded without destroying long-term value.
The dual-token model aligns all participants:
| Participant | Benefit |
| ------------ | ------------------------------ |
| **Traders** | Deep liquidity, low fees |
| **AMM LPs** | Majority share of trading fees |
| **Stakers** | Real yield + governance |
| **Protocol** | Sustainable growth funding |
Everyone benefits when the protocol succeeds.
Session-based rewards ensure:
* No snapshot gaming
* Fair distribution based on time
* Compound growth for long-term stakers
* Flexibility for active managers
This maximizes protocol efficiency while maintaining fairness.
## Next Steps
Stake VITA for xVITA rewards
Earn trading fees as an LP
Participate in protocol decisions