> For the complete documentation index, see [llms.txt](https://mzf-protocol.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://mzf-protocol.gitbook.io/whitepaper/overview/tokenomics.md).

# Tokenomics

MZF PROTOCOL’s token economy is engineered to drive long-term platform sustainability, early user engagement, and strategic capital deployment. The design emphasises fixed supply constraints, halving-based emissions, and capital efficiency.

### Capital Flow & Allocation

MZF PROTOCOL sources capital from two primary revenue streams: an initial early investor equity raise and ongoing transaction fees. The inflows will be allocated as follows:

* 30% – Capital Deployment: Allocated to off-chain investments including global startup financing and property-backed deals.
* 70% – Operational Reserve: Covers platform operating costs, including fund management fees, legal and compliance, protocol maintenance, and staking incentivise funding

### Token Supply Dynamics

MZF PROTOCOL's staking token is non-inflationary with a fixed total supply of 500M tokens. The fixed supply ensures predictability and strengthens token scarcity over time.

* Token Symbol: $MZF
* Total Token Supply (TTS): 500M (fixed)
* Circulating at Launch:  17.5M, 3.5% unlocked at TGE

| Category          | Tokens      | % of Total Supply | Lock-up   | Vesting Schedule      | TGE Unlock |
| ----------------- | ----------- | ----------------- | --------- | --------------------- | ---------- |
| Private Investors | 40,384,615  | 8.08%             | 3 months  | Linear over 12 months | 5%         |
| Pre-TGE Investors | 25,961,538  | 5.19%             | 1 month   | Linear over 12 months | 5%         |
| TGE Investors     | 14,423,077  | 2.88%             | None      | Fully unlocked at TGE | 100%       |
| Team              | 102,500,000 | 20.5%             | 12 months | Linear over 36 months | 0%         |
| Total             | 183,269,230 | 36.15%            | —         | —                     | —          |

<br>

* Post-TGE available supply: 319.2M (63.85% of TTS) with the following Cliff, Lock and Vesting Periods applied:

| Category                                | Tokens      | % of Total Supply | Lock-Up Period | Vesting Period |
| --------------------------------------- | ----------- | ----------------- | -------------- | -------------- |
| Liquidity Provision / Exchange Listings | 35,000,000  | 7.00%             | None           | None           |
| Referral & Ambassador Programs          | 3,500,000   | 0.7%              | None           | 12 months      |
| Marketing & Brand Awareness             | 35,000,000  | 7%                | None           | 12 months      |
| Legal & Compliance                      | 8,750,000   | 1.75%             | None           | None           |
| Research & Protocol Maintenance         | 17,500,000  | 3.5%              | 6 months       | 12 months      |
| Treasury & Strategic Reserve            | 100,000,000 | 20.00%            | 12 months      | 24 months      |
| Staking                                 | 116,980,770 | 23.40%            | N/A            | N/A            |
| Total                                   | 316,730,770 | 63.85%            | <p><br></p>    | <p><br></p>    |

### Staking Reward Halving Mechanism

To emulate long-term deflationary incentivises and encourage early adoption, staking rewards are issued on a Bitcoin-style halving cycle:

| Epoch | Years | Annual Emission Rate |
| ----- | ----- | -------------------- |
| 1     | 0–4   | 5.00%                |
| 2     | 4–8   | 2.50%                |
| 3     | 8–12  | 1.25%                |
| 4     | 12+   | 0.625%               |

Each halving reduces the token emission rate by 50%, with a floor below which no new staking rewards are issued. This incentivizes long-term holders and minimizes inflation risk.

### Staking Rewards Structure

Staking rewards are not derived from underlying investment returns, but from a dedicated incentive pool drawn from the operating budget and pre-allocated tokens.

#### Tiered Staking Yields

Stakers receive variable yields based on lock-up duration:

| Lock-Up Period | Annualized Yield |
| -------------- | ---------------- |
| 1 day          | 5.00%            |
| 90 days        | 10.00%           |
| 180 days       | 15.00%           |
| 365 days       | 25.00%           |

Please note that rewards are auto-compounding monthly and distributed on-chain and early withdrawal before maturity incurs a penalty and forfeits rewards.

<br>

#### Buyback Mechanism

As a display of commitment to align community and funded projects, MZF PROTOCOL has developed the following schedule for a buyback scheme:\ <br>

| Cumulative Revenue Milestone | Token Buyback Price | Total Buyback Amount (40% cumulative) | New Buyback at This Milestone |
| ---------------------------- | ------------------- | ------------------------------------- | ----------------------------- |
| $1M                          | $1.00               | $400K total                           | $400K                         |
| $2.5M                        | $2.00               | $1M total                             | $600K additional              |
| $5M                          | $4.00               | $2M total                             | $1M additional                |
| $10M                         | $8.00               | $4M total                             | $2M additional                |
| $20M                         | $16.00              | $8M total                             | $4M additional                |
| $40M                         | $32.00              | $16M total                            | $8M additional                |
| $80M                         | $64.00              | $32M total                            | $16M additional               |

\
When certain revenue milestones are met, MZF PROTOCOL will re-distribute 40% of the revenue generated on funding activities, back to the community at a pre-agreed price. It is MZF PROTOCOL’s belief that at every major business milestone, MZF PROTOCOL demonstrates its confidence by purchasing tokens at predetermined prices, creating permanent value floors for the community. Longer term this will incentivise community participation and startup confidence in a growth-orientated ecosystem. It is important to note that if the current token market price were to be higher than the fixed buyback price shown above, the buyback will occur at market price + 10% instead of the fixed price.

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