# Token Supply Inputs

## Token Distribution Schedule

TEA’s Distribution Schedule dictates the issuance of tokens to various individuals and stakeholders within the protocol. 21.8% of the TEA tokens created by the protocol are allocated to “Ecosystem & Governance.” These tokens are used as incentives to encourage project maintainers, users, and supporters to perform activities that provide value to the decentralized network. A portion of these tokens are maintained in a DAO treasury and used to vote in protocol governance.&#x20;

Roughly 18.6% of the maximum token supply will be allocated to core contributors participating in “Protocol development”. This allocation is used to promote the continued evolution of the ***tea*** Protocol which will contribute to the sustainability of the OSS ecosystem. “Early supporters & advisors” will receive approximately 15.6% of the maximum TEA token supply.&#x20;

A further 8% of TEA tokens to be distributed will be utilized to facilitate the protocol’s mainnet launch. This will include a strategic token sale to various institutional investors, and a public sale to promote widespread community distribution at the token generation event or TGE. The remaining 8% of TEA tokens will be allocated to support marketplace liquidity once a token generation event occurs.

### Token Allocation by Group Name

<figure><img src="https://2948256053-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FqiGksQPlVqufGUphG22z%2Fuploads%2FJLryxTVut8HneSdGR2nk%2FTea%20Tokenomics%20Sep%2025.png?alt=media&#x26;token=90a97d2a-63d3-4cea-8cc2-462c31591256" alt=""><figcaption><p>Token distribution of maximum supply</p></figcaption></figure>

## Token Emissions Schedule

The TEA Emissions Schedule defines how and when tokens are introduced into circulation. It has been carefully designed to promote utility, reward contribution, and drive long-term community adoption. TEA’s emissions model is largely programmatic and tied directly to network activity, ensuring that token issuance aligns with the growth and success of the protocol.

Unlike front-loaded or speculative token models, TEA is a governance-balanced token with a strictly controlled inflation rate, capped at 2% annually. Inflation is not algorithmically triggered but governed by the TEA Association, a legal entity accountable to the DAO (teaDAO). This structure ensures responsible, transparent issuance aligned with long-term protocol objectives. Should corrective intervention be required, the DAO retains the authority to vote on adjustments to the burn rate, providing a mechanism for long-term economic balance and alignment with community values.

To further reinforce sustainability and community alignment, the majority of TEA gas fees collected through protocol usage are returned to the community via the emissions pool with additional distribution being earmarked for Node operations as we further decentralize. Additionally, any unclaimed OSS reward emissions are not burned or lost—they are recirculated and reallocated to the emissions pool, allowing them to be redistributed to future contributors. This ensures that all economic value within the protocol continues to serve its mission: rewarding meaningful participation and strengthening the OSS ecosystem.

Tokens are primarily distributed to three categories of network participants:

OSS Project Developers

TEA Community Members

OSS Project Supporters

These groups are rewarded through incentive-based emissions for actions that add verifiable value to the decentralized OSS ecosystem.

&#x20;

### % of Total Token Supply Emitted, by Group Name&#x20;

<div data-full-width="true"><figure><img src="https://2948256053-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FqiGksQPlVqufGUphG22z%2Fuploads%2Fw38u300Agho3zfP5PQ7Y%2FTea%20Emissions%20Sep%2025.png?alt=media&#x26;token=bc2adcfa-b892-4014-85fb-ea5351325b0c" alt=""><figcaption><p>5-year outlook</p></figcaption></figure></div>


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