> For the complete documentation index, see [llms.txt](https://docs.ducattechnologies.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ducattechnologies.com/token-governance/token-emission/liquidity-pool-emission.md).

# Liquidity Pool Emission

How Liquidity is emitted fairly to support the market

<figure><img src="https://3732295987-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIk7mJnG2n3htlMnvwazh%2Fuploads%2F5Rjkg5JQi8ec95gQ29oW%2FTotal%20Unlock%20vs.%20Day%20(cumulative).png?alt=media&amp;token=3600d55b-6eee-4548-9ead-a1bb730070cc" alt=""><figcaption><p>Cumulative Liquidity Emission unlocking day by day</p></figcaption></figure>

The liquidity pool follows a two-stage model:

**Stage 1: Linear Vesting**\
For the first 12 months, 50% of the liquidity pool tokens will be distributed via daily vesting. This ensures a steady and predictable supply of tokens to incentivize early adopters and bootstrap liquidity.

$$
{Daily Emission (First 12 Months)} = \frac{0.5 \cdot {Total  Pool}}{365}
$$

**Stage 2: Exponential Decay**\
After the initial 12 months, the remaining 50% of the liquidity pool tokens will be distributed using an exponential decay model. This gradual reduction in daily emissions ensures a sustainable decrease in token distribution over time. The emission rate decreases according to the following formula:

$$
{Daily Emission (After 12Months)} =  \frac{0.1 \cdot {Total  Pool}}{DaysSinceYear1}
$$

<figure><img src="https://3732295987-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIk7mJnG2n3htlMnvwazh%2Fuploads%2Fs0RxYvuQuVHBZo25L7v4%2FUnlock%20vs.%20Day%20(non-cumulative).png?alt=media&amp;token=3c0cc1ae-db97-4b8b-a3c5-c86543764417" alt=""><figcaption><p>The two stage model creates a special event at the end of year 1</p></figcaption></figure>