> ## Documentation Index
> Fetch the complete documentation index at: https://docs.juiced.fi/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics

> Learn about the tokenomics of Juiced Protocol.

The Juiced token economy is designed to create a self-sustaining cycle of liquidity and governance. It moves beyond simple "farming" by aligning the long-term interests of Liquidity Providers, Governance Participants, and the Protocol itself.

The system utilizes a modified **veToken (Vote-Escrowed)** model, transforming the native token from a speculative asset into a claim on protocol cash flow and governance power, with a strict "use it or lose it" policy for voters.

### JUICE token utility

**JUICE** is the native ERC-20 utility token of the protocol. It serves as the primary currency for incentivizing liquidity on RiseX and coordinating the decentralized governance of the platform.

* **Ticker:** `$JUICE`
* **Primary Function (Incentive):** It is emitted as a reward to Liquidity Providers (Vaults & Market Makers) based on their **Liquidity Score**.
* **Secondary Function (Governance):** It is the underlying asset required to participate in the DAO via locking.
* **Tertiary Function (Bribes):** It acts as a base currency for the Bribe Marketplace (though other tokens are accepted, JUICE is the default unit of account).

### Emission schedule: The tail emission model

To ensure the protocol can sustainably pay for liquidity decades into the future, Juiced rejects a "Hard Cap" model (which inevitably leads to zero rewards and liquidity flight). Instead, it adopts a **Disinflationary Model with Tail Emissions** (similar to Curve Finance or Monero).

**Phase 1: Bootstrap (High Inflation)**

* **Duration:** Years 1-2.
* **Goal:** Aggressive market capture and token distribution.
* **Mechanism:** In the initial phase, emissions are high to attract early adopters, bootstrap deep liquidity on key RiseX pairs, and distribute governance power to a wide set of active users.

**Phase 2: The Decay**

* **Duration:** Ongoing transition.
* **Goal:** Scarcity.
* **Mechanism:** The rate of new JUICE issuance decreases periodically (e.g., weekly reduction by factor $x$). This creates a "halving-like" pressure where obtaining JUICE becomes progressively harder, incentivizing early participation.

**Phase 3: Tail Emission (Perpetual Floor)**

* **Duration:** Perpetual (Year 4+).
* **Goal:** Security and Maintenance.
* **Mechanism:** Inflation never drops to absolute zero. It stabilizes at a low, fixed annual percentage (e.g., **1-2% yearly inflation**).
* **Why?** This ensures there are *always* new JUICE tokens available to reward Market Makers. Without this "Tail Emission," the orderbooks would eventually dry up as incentives vanished.

### veJUICE (Governance & Yield)

The core value accrual mechanism is **veJUICE** (vote-escrowed JUICE). Users cannot simply "buy" veJUICE; they must earn it by locking JUICE tokens in the protocol.

**Locking Mechanics**

* **Commitment:** Users lock their JUICE for a period ranging from **1 week to 4 years**.
* **Time-Weighted Power:** The longer the lock, the more veJUICE received.
  * 1 JUICE locked for 4 years = 1.0 veJUICE
  * 1 JUICE locked for 1 year = 0.25 veJUICE
* **Non-Transferable:** veJUICE is tied to the user's address and cannot be sold or transferred. To exit, the user must wait for the lock to expire.

**Active Governance Rebase (Anti-Dilution)**

To combat voter apathy and ensure the protocol is governed by active participants, Juiced introduces an **Active Governance Rebase** mechanism (Vote-to-Maintain).

* **The Problem:** As the protocol emits new JUICE (inflation) to pay LPs, the percentage ownership of existing veJUICE holders is naturally diluted over time.
* **The Solution:** In every epoch, a portion of the new issuance is reserved for a **Rebase Pool**.
* **The Rule:**
  * **If you Vote:** You receive a "Rebase" (extra veJUICE) that tops up your balance to offset inflation. You effectively maintain your % share of the protocol.
  * **If you Do Not Vote:** You receive **zero rebase**. Your ownership stake (and claim on future fees) is permanently diluted by the new emissions.

> Result: Passive whales slowly lose their influence and fee share to active community members.

**Rights of veJUICE Holders**

1. **Gauge Voting:** Deciding which markets receive the weekly JUICE emissions.
2. **Real Yield:** Receiving a pro-rata share of the protocol's revenue (Trading Fees + Bribes).

### Revenue waterfall

Unlike governance tokens that only offer "voting rights," veJUICE is a cash-flow generating asset. The protocol captures value from two primary sources and redirects it to lockers.

**Source A: Curator Fees**

Because Juiced acts as the **Exclusive Curator** (Creator) of markets on RiseX (Phase 1), the protocol treasury automatically receives the "Curator Fee" cut from every trade executed on these pairs.

**Source B: Protocol Taxes**

Juiced charges a small protocol tax on:

* **Bribes:** A tax taken from the Bribe Marketplace before distribution.

**The Distribution**

1. **Protocol Treasury:** A small portion is retained for operational costs, audits, and strategic reserves.
2. **veJUICE Stakers:** The majority of revenue is streamed to **active** veJUICE holders in the form of stablecoins (USDC) or the base asset (RISE). This creates a "Real Yield" dividend that is independent of the JUICE token price.

### Type of users

**The Passive LP**

*Passive user who deposits assets into Maker Vaults to earn organic trading fees and base protocol incentives, without engaging in governance.*

**Power User**

*An active user who provides liquidity and simultaneously locks `JUICE` tokens to direct higher emission rates to their specific Vault, maximizing their overall APY.*

**Governance Participant**

*A user who locks `JUICE` tokens to influence protocol emissions and earns yield exclusively from external bribes (incentives), without exposure to market-making risks.*