# Token Distribution

<figure><img src="/files/MuLZVISWnOKLNVcKUoIs" alt=""><figcaption><p>ITP Allocations</p></figcaption></figure>

### **Distribution Details**

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**Development (10%):** Funding for ongoing protocol development is provided through an allocation of 10% of ITP tokens. These tokens are subject to a structured 2-year linear vesting period through [Sablier](https://app.sablier.com), aligning the developers' interests with the long-term success of the protocol. This staggered release strategy ensures sustained commitment and rewards the developers for their continued contributions. The DAO oversees the allocation and distribution of these developer tokens, ensuring transparency and fairness in the process. Developers are compensated monthly with ITP tokens, starting one month after their engagement begins. Each payment is calculated based on the approximate dollar value converted to ITP tokens at the time of payment and is linearly locked for two years, securing a vested interest in the protocol's prosperity.

**Staking (30%)**

The protocol will use a staking mechanism, allowing participants to stake ITP and will receive vITP tokens, which are integral to governance decisions, reinforcing the importance of community involvement in the protocol's direction. See our governance forum on snapshot.org where vITP can be used to vote on important decisions: <https://snapshot.org/#/infinitetrading.eth>

**DAO (30%)**

The DAO is pivotal to the protocol, embodying the principles of decentralization and community-driven development. It is tasked with key responsibilities that ensure the protocol's adaptability and financial health. The responsibilities are treasury Management including asset allocation and investment decisions.

**Liquidity Bootstrap (10%)**&#x20;

A maximum of 10% of the total token supply is allocated for liquidity bootstrap activities. These tokens are being deposited into Velodrome LP and will be deposited into a dHedge Seed Liquidity Vault to enhance market liquidity and create a strong market for ITP during the initial stages. The deposits in the seed vault are going to be used to provide liquidity to ITP/USDC pool into [Velodrome](https://velodrome.finance) after the token is listed into dHEDGE by matching the stablecoins amount with the Protocol Owned Liquidity ITP tokens. Every USDC deposit will be matched with ITP from the POL.

**Incentives(10%)**

To incentivize participation, 100M tokens will be reserved for incentives. These tokens will be allocated to vaults selected by token holder votes, ensuring that the rewards distribution aligns with community preferences, and will be used as bribes/incentives into Velodrome to obtain veVELO votes and receive VELO emissions to our liquidity pool and reward liquidity providers. See the 'Incentives' section for more information.

**Protocol Owned Liquidity (10%)**

Tokens in this category is designated for creating protocol-owned liquidity pools. These tokens are being paired with stablecoins and other treasury assets to participate in [Velodrome ITP liquidity pools](https://www.velodrome.finance/liquidity?query=itp). Allocating up to 10% of the token supply to this end helps the protocol generate $VELO, improve the ITP liquidity and bolster the protocol's treasury. The $VELO earned from POL are being used to buyback and burn $ITP and also the DAO has been locking those to obtain veVELO and deposit those into the [Infinite Trading Protocol Relayer.](https://www.velodrome.finance/relay?deposit=true\&relay=0x4CaF01B0Be785DDeD8aBC2FF70b8D547AEA12cd2)&#x20;

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