# Tokenomics

The ATEN token is the native ERC-20 cryptocurrency of the Athena Insurance platform. Key details include:

Name: Athena Token Symbol: ATEN Decimals: 18 Supply Type: Fixed Total Supply: 3,000,000,000 ATEN Current Network Deployment: Arbitrum

## Governance and Staking

ATEN serves as the governance token for the Athena ecosystem. Token holders can:

* Stake their ATEN tokens with the DAO (Decentralized Autonomous Organization)
* Participate in revenue sharing based on their staked amount
* Vote on important protocol decisions, influencing the future direction of Athena
* Hedge DeFi turbulence through the buybacks funded by claim deductibles

By staking ATEN, users actively contribute to the platform's governance and can benefit from its success through revenue sharing. This model aligns the interests of token holders with the long-term growth and sustainability of the Athena Insurance protocol.

## Token Burn

Holders of ATEN tokens benefit from a unique value-creation mechanism during periods of high claim activity. When cover claims are processed, a deductible is applied and used to buy back and burn ATEN tokens.

This process effectively increases demand for ATEN during challenging times in the DeFi space, such as during protocol exploits or asset depegs. As a result, simply holding ATEN can serve as a hedge against DeFi market turbulence, potentially preserving or increasing value for token holders when other DeFi assets may be struggling. This aligns the interests of ATEN holders with the overall health and resilience of the DeFi ecosystem.

## Token Allocations

![Token Allocations](https://3863230093-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0mKcKgKLEWonEmIM0cM0%2Fuploads%2Fgit-blob-6d04937ecda54fb3ce145cb5083c89bff5276027%2Ftoken-allocation.png?alt=media)

| Name                               | Percentage | Token Amount  | Status                    | Description                                                             | Vesting                                             |
| ---------------------------------- | ---------- | ------------- | ------------------------- | ----------------------------------------------------------------------- | --------------------------------------------------- |
| Presale                            | 5%         | 150,000,000   | Completed                 | Platform building and audit completion capital                          | 5% at TGE, 12-month vesting after 2-month cliff     |
| Strategic Partners / Strategic VCs | 5%         | 150,000,000   | Ongoing discussions       | Reserved for partners providing initial liquidity during first 6 months | 5% at TGE, No cliff, linear vesting over 18 months  |
| LBP or Launchpool                  | 10%        | 300,000,000   | Planned                   | For raising additional capital through public token sale                | 20% at TGE, No cliff, linear vesting overr 3 months |
| Team                               | 12%        | 360,000,000   | 8% allocated, 4% reserved | Designated for core team members who built Athena Ins                   | 24-month vesting with 12 months cliff               |
| Advisors / KOLs                    | 3%         | 90,000,000    | Ongoing                   | Reserved for strategic advisors and Key Opinion Leaders                 | 18-month vesting with no cliff                      |
| Liquidity Incentives               | 42%        | 1,260,000,000 | Planned                   | For incentivizing users through staking and rewards                     | Distributed over 60-month period                    |
| Treasury                           | 13%        | 390,000,000   | Reserved                  | Serves as reserve fund for Athena Ins DAO                               | 180-months vesting                                  |
| Liquidity                          | 10%        | 300,000,000   | Planned                   | Set aside to provide liquidity on decentralized exchanges               | 36-month vesting, 10% release at TGE                |