> For the complete documentation index, see [llms.txt](https://docs.nectarliquid.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nectarliquid.com/tokenomics.md). # Tokenomics Nectar Liquid is built on a sustainable, real-yield economic model designed to align the long-term incentives of traders, liquidity providers, builders, and token holders. Rather than relying on hyper-inflationary emissions, the protocol directs organic transaction fees generated from leverage trading, borrowing, liquidations, and token swaps back into the ecosystem. ### Core Architecture The Nectar Liquid economic architecture consists of two primary pillars: 1. [**NECTAR Token**](/tokenomics/nectar-token.md): The native utility and governance token of the protocol. Staking NECTAR entitles holders to protocol fee buybacks (27% of all platform trading fees are allocated to buyback NECTAR on the open market) and voting power in governance decisions. 2. [**Rewards & Incentives**](/tokenomics/rewards.md): Escrowed NECTAR (esNECTAR) distribution, staking power multipliers, trading reward epochs, and builder volume incentive programs. ### Fee Allocation Summary Every trade, swap, and position settlement on Asset Chain produces organic protocol fees. These fees are allocated transparently: * **Liquidity Providers (63%)**: Accrues directly to the pool token value (GLV / Nectarliquid pools), rewarding capital providers who back open interest. * **Token Buybacks & Stakers (27%)**: Deployed to buy back NECTAR on the open market and distributed to active stakers based on continuous staking power. * **Treasury & Protocol Reserve (10%)**: Powers ongoing development, automated keeper infrastructure, security audits, and ecosystem integration grants. Explore the following subsections for in-depth details: * [NECTAR Token](/tokenomics/nectar-token.md) — Supply schedule, staking power dynamics, and DAO treasury. * [Rewards](/tokenomics/rewards.md) — esNECTAR vesting mechanics, referral fee discounts, and trading incentives. --- # 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 by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.nectarliquid.com/tokenomics.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.