6. CredDeFAI Tokenomics

6.1. Token Overview

• Token Name: DEFAI

• Total Supply: 100,000,000 DEFAI (fixed, non-inflationary)

• Token Type: ERC-20 standard (multi-chain expansion supported via bridging)

• Utility:

  • Governance – DAO voting rights for ecosystem upgrades, parameter adjustments, and treasury usage.

  • Staking & Yield – Locking DEFAI in smart contracts for rewards, fee discounts, and risk-adjusted APY from AI-driven strategies.

  • Collateral & Credit – DEFAI can be used as collateral in CredScore lending system.

  • Ecosystem Incentives – Payment for ecosystem services (gasless swaps, oracle feeds, AI strategy access).

  • Liquidity Layer – DEFAI acts as a settlement token across multi-chain liquidity pools.

6.2. Token Allocation & Vesting

Seed Round – 3%

• Vesting: 10% released at TGE, 6-month cliff, then linear vesting over 12 months.

• Purpose: Early believers and angel investors providing initial liquidity & testing capital.

• Logic: Small allocation to prevent over-centralization but ensures strong advisory involvement.

Private Round – 2%

• Vesting: 10% released at TGE, 3-month cliff, then linear vesting over 12 months.

• Purpose: Institutional investors & strategic partners, especially cross-chain bridges and oracle providers.

• Logic: Aligns institutions with long-term growth while minimizing short-term sell pressure.

Liquidity – 5%

• Release: Injected into LP pool at launch, gradually released over 3 months.

• Purpose: Ensures healthy initial trading environment and stable token price discovery.

• Logic: Supports gasless swap mechanism by providing deep liquidity at early stage.

Ecosystem Fund – 35%

• Vesting: Released in batches over 36 months.

• Use Cases:

  • Incentives for cross-chain liquidity providers.

  • Developer bounties for building on top of CredDeFAI Protocol.

  • Integration subsidies for wallets, dApps, and CEX partnerships.

• Logic: Largest allocation since CredDeFAI relies on AI + DeFi ecosystem adoption.

Marketing Incentives – 15%

• Vesting: 5% released at TGE, remainder linearly vested over 36 months.

• Use Cases:

  • Community campaigns (airdrop, quests, Galxe/OAT).

  • KOL & influencer partnerships.

  • Educational grants for universities & blockchain academies.

• Logic: Ensures continuous user adoption & growth over 3 years.

DAO Treasury – 15%

• Vesting: 5% released at TGE, remainder linearly vested over 24 months.

• Governance: Usage determined by DAO vote (protocol upgrades, emergency reserves, partnerships).

• Logic: Provides decentralized sustainability and aligns incentives with community governance.

Team & Advisors – 15%

• Vesting: 12-month cliff, then linear vesting over 36 months.

• Purpose: Rewards core contributors, AI engineers, DeFi strategists, and security auditors.

• Logic: Long vesting ensures team commitment & prevents early exit.

Community Rewards – 10%

• Vesting: 10% released at TGE, remainder linearly vested over 12 months.

• Use Cases:

  • Watch-to-Earn style quests (engagement farming).

  • Liquidity mining campaigns.

  • CredScore reputation-based NFT rewards.

Logic: Bootstraps initial user adoption, ensures early network effect.

6.3. Token Allocation Summary

Category	Share (%)	Amount (DEFAI)	Vesting Details
Seed Round	3%	30,000,000	10% TGE, 6m cliff, 12m linear
Private Round	2%	20,000,000	10% TGE, 3m cliff, 12m linear
Liquidity	5%	50,000,000	Initial LP injection, 3m release
Ecosystem Fund	35%	350,000,000	Batch release over 36m
Marketing Incentives	15%	150,000,000	5% TGE, 36m linear
DAO Treasury	15%	150,000,000	5% TGE, 24m linear
Team & Advisors	15%	150,000,000	12m cliff, 36m linear
Community Rewards	10%	100,000,000	10% TGE, 12m linear

Total Supply: 1,00,000,000 DEFAI

---

6.4. Token Utility in Practice

1. Staking & Yield

• Users stake DEFAI to access AI-optimized DeFi strategies.

• Earn boosted APYs when holding DEFAI compared to stablecoins only.

1. Credit Layer Collateral

• DEFAI used as collateral in CredScore Lending (NFT-based credit scoring system).

• Higher DEFAI staking = lower interest rates.

1. Gasless Swaps

• Transaction fees within CredDeFAI ecosystem can be paid with DEFAI, enabling gasless UX.

1. Governance

• Voting on protocol parameters (interest rates, strategy allocation, risk parameters).

• DAO treasury fund distribution controlled by DEFAI holders.

1. Cross-Chain Settlement Token

• Functions as a bridging token for multi-chain liquidity pools.

• Ensures smooth swaps across Ethereum, BNB Chain, Arbitrum, and Layer-2s.