> 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/overview.md).

# Overview

The AgentArcade tokenomics model implements a dual-token system designed to create a sustainable economic ecosystem for AI agent creation and monetization. The system combines a fixed-supply platform token (PToken) with dynamically generated agent tokens, each governed by unique bonding curve mechanisms to ensure liquidity and price discovery.

{% @mermaid/diagram content="flowchart TB
subgraph Platform\["Platform Token (PToken) - 1B Supply"]
IDO\["Initial DEX Offering (IDO)"]
VESTING\["Vesting Schedule\n50% TGE + Linear Vesting"]
UTILITY\["Token Utility"]

```
    IDO --> VESTING
    VESTING --> UTILITY
    
    subgraph USES["Platform Token Uses"]
        DEPLOY["Agent Deployment\n(1000 PTokens)"]
        HOLD["Minimum Holding\n(1000 PTokens)"]
        GOV["Governance Rights"]
        TRADE["Agent Token Trading"]
    end
end

subgraph Agents["Agent Tokens"]
    CREATE["Agent Creation"]
    DIST["Token Distribution"]
    
    CREATE --> DIST
    
    subgraph Distribution["Distribution Split"]
        BOND["Bonding Curve Reserve\n80%"]
        LIQ["Liquidity Pool\n20%"]
    end
    
    DIST --> BOND
    DIST --> LIQ
end

subgraph Market["Market Mechanics"]
    BC["Bonding Curve\nP(s) = ae^(bs)"]
    AMM["Automated Market Making"]
    LP["Liquidity Pool"]
    
    BC --> AMM
    AMM --> LP
end

subgraph Value["Value Accrual"]
    FEES["Platform Fees"]
    BURN["Token Burning"]
    REINVEST["Ecosystem Reinvestment"]
    
    FEES --> BURN
    FEES --> REINVEST
end

Platform --> Agents
Agents --> Market
Market --> Value
Value --> Platform" %}
```