# Tokenomics

$ETHO is the native token of the EthOne ecosystem. It powers the proving economy, anchors user participation, and facilitates decentralized reward distribution without relying on traditional staking or delegation models.

* **Token Name:** $ETHO
* **Maximum Supply:** 21,000,000 tokens (fixed)
* **Token Standard:** ERC-20 (L1-native)

$ETHO is not merely a utility token. It represents a measurable unit of compute participation and a long-term incentive layer for sustaining decentralized verification on Ethereum Layer 1.

## Token Allocation

From the total supply of 21 million $ETHO, approximately **5.5 million tokens** are allocated upfront across three essential roles, each with clearly defined vesting conditions. These tokens are not part of the proving reward pool, but are necessary to bootstrap liquidity, fund long-term development, and align contributors over time.

| Category                  | Approx. Allocation    | % of Total Supply | Vesting Schedule                        |
| ------------------------- | --------------------- | ----------------- | --------------------------------------- |
| **Liquidity Provision**   | \~2,300,000 $ETHO     | \~11.0%           | Vesting on demand                       |
| **Team Allocation**       | \~1,200,000 $ETHO     | \~5.7%            | TGE 0%, linear vesting over 3 years     |
| **Ecosystem Growth Fund** | \~2,000,000 $ETHO     | \~9.5%            | TGE 0%, linear vesting over 2 years     |
| **Total (Preminted)**     | **\~5,500,000 $ETHO** | **\~26.2%**       |                                         |
| **Mining via Provers**    | \~15,500,000 $ETHO    | \~73.8%           | Distributed through block-level proving |

The team and ecosystem allocations are subject to time-locked vesting mechanisms, ensuring alignment with long-term protocol development. Liquidity tokens are released on-demand to support initial exchange availability and LP formation.

## Emission Model & Halving Schedule

$ETHO is distributed solely through **on-chain Prover activity**. Every Ethereum block includes a fixed $ETHO reward, which is granted to the selected Prover. The reward is designed to decrease over time in a **halving-based emission curve**, not based on arbitrary time, but on **total tokens mined**.

This ties distribution directly to network contribution, **you mine only what is proven, not what is timed**.

| **Halving Round** | **Block Reward ($ETHO)** | **Tokens Issued in Cycle** | **Cumulative Supply** |
| ----------------- | ------------------------ | -------------------------- | --------------------- |
| 1                 | 0.492                    | 7,756,896                  | 7,756,896             |
| 2                 | 0.246                    | 3,878,448                  | 11,635,344            |
| 3                 | 0.123                    | 1,939,224                  | 13,574,568            |
| 4                 | 0.0615                   | 969,612                    | 14,544,180            |
| 5                 | 0.03075                  | 484,806                    | 15,028,986            |
| 6                 | 0.015375                 | 242,403                    | 15,271,389            |
| 7                 | 0.0076875                | 121,201.5                  | 15,392,590.5          |
| 8                 | 0.00384375               | 60,600.75                  | 15,453,191.25         |
| 9                 | 0.001921875              | 30,300.375                 | 15,483,491.625        |
| 10                | 0.0009609375             | 15,150.188                 | 15,498,641.813        |

After the 10th halving, block rewards become negligible, effectively capping the mined supply at \~15.5M $ETHO. From that point forward, the token economy relies on circulating dynamics: usage within dApps, compute liquidity, Prover demand, and network-integrated gas-equivalents.

## Design Philosophy

EthOne does not inflate to subsidize participation. It does not lock tokens to simulate scarcity. Instead, it rewards only what is proven, computation contributed, micro-proofs submitted, and blocks finalized.

_**“$ETHO is not a promise. It is proof of work, of presence, of participation.”**_

This model ensures $ETHO remains scarce, meaningful, and functionally tied to the life of the protocol. The more the system grows, the more demand concentrates around what is finite: verifiable compute, provable effort, and Layer 1 finality.
