# $FOTON Distribution Rate

***

**See:**\
\
[#key-takeaways](#key-takeaways "mention")\
[#exponential-decay-model](#exponential-decay-model "mention")\
[#how-it-works](#how-it-works "mention")\
[#example-of-the-exponential-decay-model](#example-of-the-exponential-decay-model "mention")\
[#usdfoton-distribution-by-pool](#usdfoton-distribution-by-pool "mention")\
[#nexapia-team-usdfoton-allocation-release](#nexapia-team-usdfoton-allocation-release "mention")\
[#how-the-release-works](#how-the-release-works "mention")\
[#release-schedule-breakdown](#release-schedule-breakdown "mention")\
[#usdfoton-flow-into-circulation-annual-flow](#usdfoton-flow-into-circulation-annual-flow "mention")\
[#total-usdfoton-in-circulation-cumulative-view](#total-usdfoton-in-circulation-cumulative-view "mention")\
[#buyback-integration-and-redistribution](#buyback-integration-and-redistribution "mention")\
[#buyback-redistribution-percentages](#buyback-redistribution-percentages "mention")

***

The **$FOTON Distribution Rate** page provides a comprehensive insight of how $FOTON tokens are released into circulation. Nexapia employs a **exponential decay model** and integrates **buyback & burn mechanisms** to assist in token deflation, balanced incentives, and controlled token supply growth. This page includes **key highlights, clear definitions, charts, and insights** to visualize the flow and cumulative growth of $FOTON in circulation over time.

***

### **Key Takeaways**

* **Controlled Token Releases**: $FOTON tokens are released using a **exponential decay model**, which releases 33% of the remaining pool each year.
* **Major Sources of Circulation**: The four primary sources of circulating $FOTON are LP Staking, Governance Staking, NFT Staking, and Platform Rewards.
* **Team Allocation Lockup**: Team tokens follow a 6-month lockup and 24-month gradual release schedule to ensure long-term alignment and reduce community concerns about token dumps.
* **Gradual Supply Growth**: Circulating supply grows quickly in the first year but slows as the remaining pools get smaller each year.
* **Buyback & Burn Integration**: Buybacks remove tokens from circulation through permanent burns, reducing supply while reinforcing token value. This deflationary mechanism is designed to assist in sustainability and strengthen incentives.

***

### **Exponential Decay Model**

#### **How It Works**

* Each year, **33% of the remaining pool is released**.
* As the pool size decreases, the amount released each year is smaller.
* The plan applies to these four major pools:
  * **Platform Rewards**
  * **NFT Staking**
  * **Governance Staking**
  * **LP Staking**

This system prevents excessive token inflation while ensuring ongoing rewards for participants.

***

### **Example of the Exponential Decay Model**

| **Year**   | **Initial Supply** | **33% Released** | **Remaining Supply** |
| ---------- | ------------------ | ---------------- | -------------------- |
| **Year 1** | 10,000,000         | 3,300,000        | 6,700,000            |
| **Year 2** | 6,700,000          | 2,211,000        | 4,489,000            |
| **Year 3** | 4,489,000          | 1,481,370        | 3,007,630            |
| **Year 4** | 3,007,630          | 991,315          | 2,016,315            |
| **Year 5** | 2,016,315          | 664,180          | 1,352,135            |

{% hint style="info" %}
This system creates a predictable, slow, and controlled release of tokens. The slowing release rate preserves value for token holders and avoids sudden inflation.
{% endhint %}

***

### **$FOTON Distribution by Pool**

| **Category**                | **Total Allocation** | **Annual Distribution**            |
| --------------------------- | -------------------- | ---------------------------------- |
| **Platform Rewards**        | 10,000,000           |  33% of remaining                  |
| **NFT Staking**             | 10,000,000           |  33% of remaining                  |
| **Governance Staking**      | 12,000,000           |  33% of remaining                  |
| **LP Staking**              | 25,000,000           | 33% of remaining                   |
| **Nexapia Team**            | 15,000,000           | 6-Month Lockup, 24-Month Vesting   |
| **Nexapia Foundation Fund** | 18,000,000           | On-demand use for growth           |
| **Block Sapiens Airdrop**   | 5,000,000            | One-Time Airdrop After NFT Sellout |
| **Initial Token Sale**      | 5,000,000            | Immediate upon sale                |

{% hint style="info" %}
This table shows the long-term commitment to sustainability. Most pools follow the **exponential decay model**, which prevents sudden token floods. The **buyback integration** further supports token stability.
{% endhint %}

***

### **Nexapia Team $FOTON Allocation Release**

**Nexapia Team** allocation consists of **15,000,000 $FOTON** (15% of the total $FOTON supply) dedicated to supporting the ongoing development, operations, and strategic growth of the Nexapia platform. To ensure **fairness and alignment with long-term growth**, the release of this allocation is subject to a **lockup period and a gradual vesting schedule**.

**First of 24 Monthly Releases: July 10, 2025**

***

| **Total Allocation**  | **15,000,000 $FOTON** (15% of total supply)           |
| --------------------- | ----------------------------------------------------- |
| **Initial Lockup**    | **6 months** (no tokens are released)                 |
| **Vesting Period**    | **24 months (2 years) after lockup**                  |
| **Release Schedule**  | Gradual linear release over 24 months                 |
| **Initial Release**   | 625,000 **$FOTON**                                    |
| **First Release**     | **July 10, 2025**                                     |
| **Release Frequency** | **Monthly** (equal portions each month for 24 months) |

***

#### **How The Release Works**

1. **6-Month Lockup**
   * No tokens are released to the Nexapia Team for the first **6 months** after token generation.
   * This ensures the team is fully aligned with the long-term success of the Nexapia platform.
2. **24-Month Vesting Period**
   * After the initial 6-month lockup, the **15,000,000 $FOTON** allocation is gradually released over **24 months**.
   * Each month, an **equal portion of 625,000 $FOTON** is unlocked and distributed to the team.
   * This schedule ensures slow, controlled access to the allocation, aligning the team's incentives with long-term platform success.
3. **No Early Release**
   * No team member can access their allocation before the end of the lockup or ahead of the release schedule.
   * This ensures a **trust-based approach** for the community, reducing any potential fear of large token dumps.

***

#### **Release Schedule Breakdown**

| **Month** | **FOTON Released This Month** | **Total Released So Far** | **Total Remaining** |
| --------- | ----------------------------- | ------------------------- | ------------------- |
| **0-6**   | **0 $FOTON** (lockup)         | 0                         | 15,000,000          |
| **7**     | 625,000                       | 625,000                   | 14,375,000          |
| **8**     | 625,000                       | 1,250,000                 | 13,750,000          |
| **9**     | 625,000                       | 1,875,000                 | 13,125,000          |
| **10**    | 625,000                       | 2,500,000                 | 12,500,000          |
| **11**    | 625,000                       | 3,125,000                 | 11,875,000          |
| **12**    | 625,000                       | 3,750,000                 | 11,250,000          |
| **13**    | 625,000                       | 4,375,000                 | 10,625,000          |
| **14**    | 625,000                       | 5,000,000                 | 10,000,000          |
| **15**    | 625,000                       | 5,625,000                 | 9,375,000           |
| **16**    | 625,000                       | 6,250,000                 | 8,750,000           |
| **17**    | 625,000                       | 6,875,000                 | 8,125,000           |
| **18**    | 625,000                       | 7,500,000                 | 7,500,000           |
| **19**    | 625,000                       | 8,125,000                 | 6,875,000           |
| **20**    | 625,000                       | 8,750,000                 | 6,250,000           |
| **21**    | 625,000                       | 9,375,000                 | 5,625,000           |
| **22**    | 625,000                       | 10,000,000                | 5,000,000           |
| **23**    | 625,000                       | 10,625,000                | 4,375,000           |
| **24**    | 625,000                       | 11,250,000                | 3,750,000           |
| **25**    | 625,000                       | 11,875,000                | 3,125,000           |
| **26**    | 625,000                       | 12,500,000                | 2,500,000           |
| **27**    | 625,000                       | 13,125,000                | 1,875,000           |
| **28**    | 625,000                       | 13,750,000                | 1,250,000           |
| **29**    | 625,000                       | 14,375,000                | 625,000             |
| **30**    | 625,000                       | **15,000,000**            | **0**               |

***

{% hint style="info" %}
#### **Why This Matters**

* **Transparency**: The **6-month lockup** and **24-month vesting** demonstrate a long-term commitment to the platform.
* **Community Trust**: Nexapia ensures the team cannot prematurely sell their tokens, reducing the chance of sudden large sales.
* **Incentive Alignment**: The team remains motivated to ensure long-term success because token releases are slow, steady, and aligned with the platform's growth.
{% endhint %}

***

### **$FOTON Flow Into Circulation (Annual Flow)**

This chart shows the **flow of $FOTON tokens into circulation** each year from the **four major pools**. This gives insight into the inflationary pressure from token releases. Not including $FOTON buyback & Burn or Team distributions.&#x20;

#### **Chart: Flow of $FOTON Into Circulation by Pool**

<figure><img src="https://content.gitbook.com/content/5effFlcYNrLj3krjNWYZ/blobs/XcBraCs9y8UyiNfvetnf/output%20(11).png" alt="" width="563"><figcaption></figcaption></figure>

{% hint style="info" %}
**Key Insights**

* **Peak Release in Year 1**: Most tokens enter circulation in Year 1 as larger pools release 33% of their supply.
* **Decreasing Flow Over Time**: Token flow slows as remaining supplies diminish.
* **LP Staking Dominates**: LP Staking provides the largest inflow of tokens to circulation.
{% endhint %}

***

### **Total $FOTON in Circulation (Cumulative View)**

While the previous chart shows the annual flow, this chart provides the **total cumulative $FOTON in circulation** at the end of each year.  Not including $FOTON Buyback and Burn or Team distributions.&#x20;

#### **Chart: Total Cumulative $FOTON in Circulation by Pool**

<figure><img src="https://content.gitbook.com/content/5effFlcYNrLj3krjNWYZ/blobs/ZaaGsYDessCiE5rihKqr/output%20(12).png" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Key Insights**

* **Gradual Supply Growth**: Circulating supply grows slower each year as releases shrink.
* **Largest Contributions**: LP Staking and Governance Staking account for most of the circulating supply.
* **Sustainable Approach**: This controlled release prevents excessive inflation, supporting long-term price stability.
{% endhint %}

***

### **Buyback & Burn Integration**

**How It Works**

1. **Revenue Collection**: Platform revenue (via fees) funds the **Momentum Reserve**.
2. **Buybacks**: The reserve is used to buy $FOTON from **FPeX** $FOTON pairs.
3. **Burn**: All repurchased tokens are **permanently burned**, reducing circulating supply.

**Why This Matters:**\
This deflationary system reduces token supply, assists in supporting long-term value, and creates a feedback loop that strengthens $FOTON over time.

***

{% hint style="info" %}
* Nexapia ensures a **sustainable release of $FOTON** using a **exponential decay model**.
* **Buybacks** create positive buy pressure while strengthening reward pools.
* The total circulating supply is controlled and predictable over time.
* **LP Staking** has the largest impact on circulating supply growth.
{% endhint %}

***

### Further Reading

* [](<> "mention")
* [usdfoton-allocation](usdfoton-allocation "mention")
* [block-sapiens-usdfoton-airdrop](block-sapiens-usdfoton-airdrop "mention")
* [initial-usdfoton-sale](initial-usdfoton-sale "mention")
* [initial-usdfoton-liquidity](initial-usdfoton-liquidity "mention")
* [usdfoton-buyback-and-burn](../nexapia-momentum-reserve/usdfoton-buyback-and-burn "mention")
