# 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%&#x20;
* 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="https://3765020093-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fz3WPDy147nznJmzbXKN5%2Fuploads%2FN4PHNUCfj6hCScK85DBg%2Fgittokenomics2.png?alt=media&#x26;token=02641bca-8ee6-45da-a02b-a7c8d092215c" 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.
