> For the complete documentation index, see [llms.txt](https://agentarcade.gitbook.io/agentarcade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://agentarcade.gitbook.io/agentarcade/tokenomics/agent-tokens.md).

# Agent Tokens

Agent tokens represent ownership and economic rights in individual AI agents. Each agent token implements a unique bonding curve mechanism that ensures continuous liquidity and price discovery based on market demand.

#### Token Generation Parameters

The agent token generation process follows a standardized approach while allowing for customization based on specific agent characteristics and market conditions.

```
AgentToken {
    initialization: {
        supply_model: dynamic,
        distribution: {
            bonding_curve: 80%,
            liquidity_pool: 20%
        }
    }
}
```

#### Distribution Mechanism

The distribution mechanism ensures fair initial allocation while maintaining sustainable liquidity through automated market making and permanent liquidity provision.

```
TokenDistribution {
    initial_allocation: {
        bonding_curve_reserve: 80% {
            pricing: exponential_curve,
            access: public
        },
        liquidity_provision: 20% {
            pool_initialization: automated,
            lp_tokens: burned
        }
    }
}
```