# Initial Supply & Emission Schedule

In this document, we’re going over the initial supply for <mark style="color:purple;">$BUG</mark> and how it will be distributed at launch & vested. Afterward, we’re going over the inflation schedule.

There will be a total of 10,000,000 $BUG tokens at launch. These will be distributed like this:

* BUG NFT Airdrop 15% (1,500,000 $BUG)
* Initial LP & LGE 10% (1,000,000 $BUG)&#x20;
* Team 20% (2,000,000 $BUG)
* Ecosystem Fund 15% (1,500,000 $BUG)
* Partner LP Matching 10% (1,000,000 $BUG)
* Protocol Airdrop 15% (1,500,000 $BUG)
* User Airdrop 5% (500,000 $BUG)&#x20;
* User LP Matching 10% (1,000,000 $BUG)

<figure><img src="https://3418705969-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQtUaZmkHcxg5V4ycBjOP%2Fuploads%2F1AU5kbVnyFUjd5k2koMC%2Fimage.png?alt=media&#x26;token=47377616-febc-40da-b0cd-56c6f969234e" alt=""><figcaption></figcaption></figure>

### Swarm NFT Airdrop

15% of the initial supply is allocated to <mark style="color:purple;">''The Swarm'' BUG NFT</mark> minters and is claimable right at launch on Bug Finance.

BUG NFT Airdrop is balanced between <mark style="color:purple;">$BUG</mark> & <mark style="color:purple;">veBUG</mark>:

* 50% as <mark style="color:purple;">veBUG</mark> locked forever
* 50% as <mark style="color:purple;">$BUG</mark>, vested over 12 weeks with 25% released on launch

### Initial LP & LGE

We're allocating 10% of the initial supply for our liquidity generation event (more info soon) and initial LP. 500,000 <mark style="color:purple;">$BUG</mark> will be available in our LGE, and all money raised will be paired with the remaining 500,000 <mark style="color:purple;">$BUG</mark> and paired with `$MATIC` & `$USDT` at launch to provide enough liquidity at launch.

### Team & Advisors

20% of the initial supply has been distributed to the team to engage them in the long-term success of Bug Finance. All team tokens are vested for 1 year for advisors and the team.&#x20;

The team receives 50% <mark style="color:purple;">veBUG</mark> locked forever, and 50% <mark style="color:purple;">$BUG</mark> vested linearly over 1 year with a 3-month cliff. The Co-Founders of Bug Finance will receive 100% of their allocation in veBUG locked forever, truly aligning themselves with the growth and health of the protocol.

### Ecosystem Fund

15% of the initial supply is dedicated to a specific fund that will be used to support a wide range of projects and activities that aim to accelerate the growth of Bug Finance. Part of the Ecosystem Fund will mostly be converted to veBUG and used as follows:

1. Strategically support projects with an alignment towards the success of Bug Finance. Such grants would be given for liquid wrappers or other protocols that use Bug Finance as a liquidity layer or build on top of it.
2. Bribe matching towards partner protocols that contribute to the Bug Finance ecosystem.

### Partner LP Matching

10% of the initial supply is allocated to our Partner LP Matching Fund, designed to support partners launching with a `BUG LP` pair. This fund enables us to match our partners' tokens with <mark style="color:purple;">$BUG</mark>, providing them with substantial locked liquidity and a significant <mark style="color:purple;">veBUG</mark> position from the outset. Partners will have their liquidity locked for 6 months. This approach creates deep liquidity for new partner pools and fosters long-term engagement with the protocol's vision.

### Protocol veBUG Airdrop

15% of the initial supply is dedicated to airdrops to protocols that demonstrate their willingness to engage with our liquidity layer. All airdrops will be in veBUG locked forever. Protocol Airdrops will be allocated throughout the first year after launch based on a wide range of metrics and factors, such as product, TVL, trade volumes, and bribing activity. The airdrop will fully be in <mark style="color:purple;">veBUG</mark>, to align them with the long-term engagement with the protocol's vision.

### User veBUG Airdrop

5% of the initial supply is dedicated to airdrops for regular users of Bug Finance and our partner protocols. Users will be chosen based on behaviors that promote the long-term stability of Bug Finance and partner protocols. The specific criteria would be decided either by the Bug Finance team or partner protocols and they may include engagement metrics such as staking, holding tokens, providing liquidity, bribing, trading competitions, etc.

### User LP Matching

10% of the initial supply is allocated to our User LP Matching Fund. This is the equivalent of the Partner LP Matching program, but open to all users. This will allow users of protocols that don’t have an explicit protocol treasury to obtain a similar deal and create deep liquidity for their pools. Similarly to partners, users will have their BUG LP veBUG position locked for 6 months. Each pool will have an allocation of <mark style="color:purple;">$BUG</mark>, and users can get the $BUG side of their LP as an airdrop. This grants them a <mark style="color:purple;">veBUG</mark> position that includes trading fees, bribes, and emissions to said BUG LP.\


{% hint style="info" %}
Approximately 50% of the initial $BUG supply will be locked forever in single-sided veBUG and another 20% will be locked in veBUG LP for the first 6 months after which it would be subject to the exit mechanism. And 5% from the LGE will be in BUG LP forever. Meaning 25% of the initial supply will be in BUG LP.
{% endhint %}

## Emissions Specifications



* **Weekly emissions (at inception): 400,000&#x20;**<mark style="color:purple;">**$BUG**</mark>
* **Weekly emissions decay: 2%**
* **Weekly developer wallet allocation: 2.5%**&#x20;
* **Weekly&#x20;**<mark style="color:purple;">**veBUG**</mark>**&#x20;rebase: 0%**
* **Emissions for liquidity providers: 97.5%**

<figure><img src="https://3418705969-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FQtUaZmkHcxg5V4ycBjOP%2Fuploads%2F2oNI2rMkdRW8kMli9uNo%2FSupply%20%26%20Emissions%20Schedule.png?alt=media&#x26;token=181681cb-2fee-4515-9c73-9df6f07917e8" alt=""><figcaption></figcaption></figure>
