> For the complete documentation index, see [llms.txt](https://paragon-protocol.gitbook.io/paragon-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://paragon-protocol.gitbook.io/paragon-protocol/tokenomics-xpgn/xpgn-tokenomics.md).

# XPGN Tokenomics

### TL;DR

* max supply: **550,000,000 XPGN**
* emissions distributed via farming
* protocol fees support buybacks and liquidity
* veXPGN controls emissions and incentives

***

### Supply Model

#### 🔒 Hard Cap

* maximum supply: **550,000,000 XPGN**
* enforced at the protocol level

***

#### Distribution

XPGN supply is allocated across:

* liquidity incentives (farming)
* treasury and protocol liquidity (POL)
* ecosystem and growth
* team and contributors (vested)

***

👉 Tokens are released over time, not fully issued at launch.

***

### Emissions

XPGN emissions are:

* distributed to farming pools
* directed by veXPGN governance
* adjusted based on participation and usage

***

👉 The system is designed to reward active liquidity rather than idle capital.

***

### Value Drivers

XPGN value is driven by:

***

#### 💸 Trading Activity

* swap fees generated by protocol usage
* partially allocated to treasury
* used for buybacks and liquidity

***

#### ⚡ Execution Efficiency

* optimized execution may generate additional value
* distributed across participants

📌 See **Surplus & Rebates** for details

***

#### 🌾 Emissions

* incentivize liquidity and participation
* governed and adjustable

***

### veXPGN (Governance Layer)

Locking XPGN creates veXPGN, which allows users to:

* vote on emissions
* influence protocol parameters
* participate in incentive systems

***

👉 veXPGN aligns long-term users with protocol growth.

***

### POL & Buybacks

Protocol fees contribute to:

* buybacks of XPGN
* protocol-owned liquidity (POL)
* long-term market stability

***

👉 This creates a feedback loop between usage and token demand.

***

### System Model

Paragon combines three layers:

* **Emissions** → drive participation
* **Fees** → capture value
* **Execution** → improve efficiency

***

👉 Together, these create a system where activity drives rewards.

***

### ⚠️ Key Principles

* emissions are controlled, not unlimited
* governance adjusts parameters over time
* token value is tied to protocol usage
* no single mechanism dominates

***

### Summary

XPGN is designed as:

* a governance token
* an incentive mechanism
* a value-aligned asset

***

It connects liquidity, execution, and governance into a system where real usage drives long-term value.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://paragon-protocol.gitbook.io/paragon-protocol/tokenomics-xpgn/xpgn-tokenomics.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.