# Tokenomics

## $RING: Tokenomics & Unlocks

$RING is designed for long-term resilience across technology, finance, and ecosystem growth. Our model aligns incentives between team, investors, and community while making accountability transparent.

<figure><img src="/files/qJv0aB4fRKxVBFmb6cQt" alt=""><figcaption></figcaption></figure>

### Token Distribution

* **Team – 20%**\
  12-month cliff post-TGE, followed by 36 months of quarterly vesting (4 years total).\
  See our full disclosure, including on-chain transactions, [here.](https://x.com/RingfenceAI/status/1954905672404852818)
* **Community – 10.5%**\
  Fully unlocked. Includes airdrops to Data Agent holders, $XAVI stakers via virtuals.io, and broader incentives. Over $1M USD has already been distributed at launch.
* **Grants Program – 7%**\
  Dedicated to the Based Agent Grants (BAG) fund, supporting teams building the next wave of agentic projects across Virtuals, Base, and beyond.
* **Treasury – 16.5%**\
  For protocol development, operations, and ecosystem expansion.
* **Liquidity – 18%**\
  Ensuring deep markets, healthy trading, and ecosystem incentives.
* **Advisors – 4%**\
  6-month cliff, with same terms as investors below.
* **Investors – 24%**

Our cap table includes a strong mix of long-term aligned funds and early believers. We are backed by NEAR Foundation, Morningstar Ventures, NxGen, RealBasementDAO, Spark Digital Capital, Optimista Capital, Nabais Capital, plus notable angels including IvanOnTech, IceBagz, loldefi, The Crypto Dog, Bagsy, Stillman, RookieXBT, CryptoDiffer, KongBTC, BlackbeardXBT, and more.

* **6-month cliff:** 5% of investor pool (1.2% supply) unlocks Sept 1, 2025.
* **Remainder:** governed by the Dynamic Vesting Pool.

### Dynamic Vesting Pool (DVP)

Vesting at Ringfence isn’t fixed. Investor unlocks scale with revenue performance:

* <$50K net revenue → 2% vest
* $50K–$100K → 4%
* $100K–$250K → 6%
* $250K–$500K → 8%
* $500K+ → 10%

The DVP balance is the pool of investor tokens left after the 6-month cliff unlock. Each month, we apply the vesting rate to that remaining balance:

* Example: If $RING earns $120K net revenue in a month → vesting rate is 6%.
* If the remaining DVP balance is 100M tokens, then 6M tokens vest into claimable status.
* The next month, the calculation applies to the new balance (94M), not the original.

This ensures vesting is both performance-linked and decreasing over time as the pool runs down.

Combined with the **Smart Release Mechanism** $RING sets a new standard for how teams and investors share risk and reward.

### Smart Release Mechanism

Even when vesting accelerates, tokens don’t flood the market.vested tokens move into a claimable pool with a daily release cap of 0.5% of allocation or $50,000 USD equivalent, smoothing liquidity and preventing supply shocks.&#x20;

Smart Release transforms vesting from a blunt schedule into a controlled flow, sustaining trust and stability as volumes scale.


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