> For the complete documentation index, see [llms.txt](https://insightx-2.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://insightx-2.gitbook.io/whitepaper/insightx-whitepaper/7.-tokenomics-and-governance.md).
# 7. Tokenomics and Governance
InsightX's economic model, centered on the INX platform token, aims to achieve a perfect closed loop of protocol value capture, user incentives, and decentralized governance. INX serves not only as a medium for trading and revenue distribution within the ecosystem but also as a crucial link connecting AI agents, liquidity providers, and long-term holders. Through a carefully designed deflationary mechanism, multiple revenue distributions, and progressive decentralized governance, INX will achieve sustainable value growth along with protocol trading volume, TVL, and the expansion of the InfoFi ecosystem.
#### 7.1 The purpose and use of tokens
As InsightX's native utility token, INX has the following core functions:
* **Transaction fee sharing and passive income :** The transaction fees generated by each transaction will be distributed proportionally to INX stakers and qualified ecosystem participants, realizing a true "transaction as dividends".
* **Staking and Re-staking Incentives :** Users can earn additional staking rewards, AI market-making rewards, and priority liquidity incentives by staking INX. Additionally, staking both predictive positions and INX can unlock multiple interest-bearing mechanisms under the Unified Margin Framework.
* **AI Agent Ecosystem Incentives :** INX is used to reward AI Agents and developers who continuously contribute to liquidity and pricing efficiency, driving the long-term activity of the MindKit agent network.
* **Governance Rights :** Holders can participate in voting on proposals regarding protocol parameter adjustments, event verification rules, new market launches, and future use of Treasury funds.
* **Fee waivers and priority access :** Paying fees with INX entitles you to tiered discounts and priority access to early alpha markets and institutional services.
#### 7.2 Token Allocation, Release Mechanism and Deflationary Design
Total Supply: **1,000,000,000 INX**
| **Category** | **Share (%)** | **Amount** | **TGE Release** | **Cliff (Months)** | **Linear Vesting (Months)** |
| :-----------------: | :-----------: | :---------: | :-------------: | :----------------: | :-------------------------: |
| Early Investors | 5% | 50,000,000 | 0% | 12 | twenty four |
| Liquidity | 10% | 100,000,000 | 50% | 0 | 3 |
| Ecosystem Rewards | 45% | 450,000,000 | 5% | 0 | 60 |
| Team | 10% | 100,000,000 | 0% | 12 | 48 |
| Advisors | 3% | 30,000,000 | 0% | 12 | 36 |
| Governance Reserves | 12% | 120,000,000 | 10% | 0 | 24 |
| Growth Grants | 7% | 70,000,000 | 10% | 0 | 12 |
| Community & Airdrop | 4% | 40,000,000 | 5% | 0 | 12 |
| Listing | 4% | 40,000,000 | 20% | 0 | 3 |
Deflation mechanism : A portion of the transaction fee from each transaction is used for INX buybacks and permanent burning, while a portion of AI market-making revenue is injected into the burning mechanism, increasing token scarcity as trading volume increases.
#### 7.3 Value Capture and Economic Incentive Model
INX's value is anchored to core protocol metrics: trading volume, TVL, active users, and AI Agent contribution.\
As Mantle's mainnet trading volume reaches hundreds of millions of US dollars, INX holders can achieve compound returns through multiple income streams (fee sharing + staking rewards + AI market-making revenue).
**Positive economic flywheel :**\ Growth through usage → Value capture → Incentive enhancement → Ecosystem expansion\
ensures a win-win situation for users, the protocol, and token holders.
#### 7.4 Decentralized Governance Approach
* 2026–2027 : Core team and community multi-signature governance, rapid iteration of products and security mechanisms.
* 2028 and beyond : Full transition to DAO, with INX holders exercising decision-making power over protocol upgrades, Treasury management, and InfoFi industry standards development through a proposal system.
Through this design, INX is not only a trading and yield instrument, but also a governance asset for the long-term autonomy and sustainable development of the InsightX protocol.
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