# Tokenomics

### Overview

Avaware originally minted 2M tokens that were sold on the market to investors in our original fair launch event. The first version of Avaware's tokenomics can be seen below. Aside from the initial amount that was sold on the market, none of the other tokens seen in the V1 graph were ever minted, instead we opted to go for an emissions based approach after the fair launch, you can read more about how tokens are being distributed through the farming emissions [here](#tokenomics-v2).

### Tokenomics V1

![Tokenomics V1](https://428798017-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBxM4uxD6BHY1NWxJYhO2%2Fuploads%2FZ1qnDfxUpfgRe2KcAlKE%2Fv1Tokenomics.png?alt=media\&token=5ac69361-fd54-4211-938b-b7243dd91d82)

It's important to note that although we made plans for the 10m, AVE is actually minted through the farms. Our mint manager mints the tokens the farms need as they need to be refilled automatically. We have set our max weekly emissions to 200k per week (MAX) and that would give us 9.9m tokens per year. Our emissions have actually been quite a bit lower than that though, we're currently at 7.8m tokens and are coming up on our 1 year anniversary here soon.

We're going to lower the emissions over time as the price increases. Right now at this extremely low price and market cap everything is still running great. We've spent a lot of time on emissions and tokenomics and have put a lot of thought and strategy into our pool emission distribution.

### **Tokenomics V2**

Avaware takes an emission based approach to token distribution. Tokens are minted and distributed through our farming system to investors and users. After watching many projects come and go we decided that this is the best approach and makes the most sense. Avaware's goal is to reduce emissions as price increases, eventually reaching a point where the protocol is actually buying back more AVE than is being distributed.

**Emission Rate**:             \~5m tokens per year , emissions will be reduced as price increases.

| Emission Type | % of Weekly Emissions |
| ------------- | --------------------- |
| Farming       | 90%                   |
| Treasury      | 5%                    |
| Team          | 5%                    |

#### Tokenomics Updated

Avaware team has decided to update our farms and do away with the partner farms for now. This means our farm emissions will be concentrated on our most important pairs on the market such as AVE/wAVAX, AVE/AUSD

![Current Emissions April 19 2022](https://428798017-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBxM4uxD6BHY1NWxJYhO2%2Fuploads%2FDLwqgiLAyJ7hJ72kxJud%2Femissions.png?alt=media\&token=81f45322-a705-4cf1-91df-a35d2dc77a25)

With this update our emissions have been lowered from 10,000,000 AVE per year to 4,500,000 AVE per year. Our plan is to lower the emissions even further by 2023, eventually settling between 500,000 and 1,000,000 AVE per year.


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