> For the complete documentation index, see [llms.txt](https://coffee-2.gitbook.io/coffee-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coffee-2.gitbook.io/coffee-docs/overview/editor.md).

# Tokenomics

## Token Economics

The COFFEE token plays a crucial role in aligning incentives and facilitating transactions within the ecosystem. COFFEE functions as a utility and credit system for agent deployment and usage via staking. In order to use the product, create and deploy agents users will need to continuously buy tokens as in-app credits or stake tokens.

#### Token Utility

1. Service Usage: Use tokens to pay for agent services and marketplace transactions.
2. Agent Deployment: Pay to create, deploy and update agents.
3. Staking: Lock tokens to participate in governance and to gain full access to the product.

#### Token Distribution

* Team: 5% (Vested for 3 months)
* Marketing: 5% 
* CEX Listing Reserve: 8% (Vested for 1 month, increased if not needed)
* Presale: 10% (Vested over 3 weeks)
* Developer Incentives and Grants: 10% (Vested for 2 months)
* Liquidity Pool: 62%

<figure><img src="/files/8ihEGiCnNEiGmGO7Cpe6" alt=""><figcaption></figcaption></figure>

#### Incentive Mechanisms

1. Developer Rewards: Earn tokens for creating popular and high-performing agents.
2. Developer Incentives: Receive tokens to build out new agents. New agents can be submitted on-chain and approved by our governance committee.