# VALAS token ## Utility: staking and locking 50% of the revenue generated through borrowing is distributed directly to users who stake VALAS. Both lenders and borrowers receive VALAS rewards to incentivize protocol use. VALAS liquidity mining builds and extends upon a mechanism first introduced by Ellipsis Finance on BNB Chain, and later also used in Geist Finance on Fantom. Rewards are vested for 3 months, but may be claimed immediately for a penalty. The penalty is then distributed to users who choose to lock VALAS for 3 months. This mechanism ensures steady rewards for those who actively commit to the protocol by locking their tokens. Valas improves on the previous mechanism by setting the penalty fee to 75% initially, decaying linearly to 25% during the 3 month vesting period. In short, VALAS stakers earn protocol fees, VALAS lockers earn protocol fees as well as exit penalties from users who exit their vests early. ## Tokenomics VALAS has a total supply of 3,000,000,000: * 50% distributed as incentives for lenders and borrowers, released over a period of five years * 20% allocated as VALAS/BNB incentives for PancakeSwap liquidity providers, released over a period of five years * 20% to the team, released linearly over one year * 8% to the treasury * 2% to airdrops ## Emissions For the technically minded, the exact monthly emission rate is calculated as: ``` 175000000/1.0904**n ``` where `n` is the number of months since launch. Emissions are split 71/29 between lending/borrowing and VALAS/BNB incentives. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.valasfinance.com/valas-token.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.