Tokenomics

BM Finance Protocol issues the protocol-native governance and value capture token $MONEY, designed to drive long-term protocol growth, foster ecosystem collaboration, enable value sharing, and ensure the sustainable development of the protocol’s governance framework.

1. Token Role & Positioning

Role	Description
Governance Rights	Participate in major protocol governance decisions, including parameter tuning, fee model adjustments, etc.
Value Capture	Part of the protocol revenue is used for token buyback and burning or distributed to staked users.
Liquidity Incentives	Incentivize liquidity providers (LPs), borrowers, and deposit/withdrawal users.
Ecosystem Expansion	Incentivize ecosystem partners, developers, regulators, and marketing promotion.

2. Core Utilities of the Token

Staking Mechanism

• Users can stake $MONEY to participate in protocol governance and increase their voting power.

• Stakers are entitled to profit-sharing based on protocol revenues, which include:

  • Interest income from loans

  • Fees from fiat on/off ramp services

  • Yields from asset management

• Stakers enjoy discounted fees on borrowing services and fiat on/off ramps during the staking period.

• A portion of the staking pool is subject to lock-up, creating a stable long-term liquidity pool.

Fee Utility

• Using $MONEY to pay protocol fees offers an up to 50%.

• Discounts apply to various fee scenarios, including:

  • Fiat on/off ramp fees

  • Loan interest payments

  • Pay gas fees

• This enhances $MONEY's utility and payment value across day-to-day protocol use cases.

Ecosystem Incentives

Targeted support for long-term contributors including:

• Ecosystem builders

• Strategic partners

• Developer communities

• Market expansion teams

• Compliance consultants

3. Token Issuance Mechanism

Module	Allocation	Description
Public Sale	37.5%	Fixed allocation ratio required by Virtuals protocol Launch.
Liquidity Pool	12.5%	Fixed allocation ratio required by Virtuals protocol Launch.
Team	20%	3-month lock-up, followed by linear vesting over 12 months.
DAO Treasury	22%	Supports ecosystem fund, developer fund, long-term reserves, strategic partnerships and resource collaboration. Lock-up: 3 months, linear vesting over 12 months.
Early Supporters Airdrop	3%	Incentives for early contributors and core airdrop users. 3-month lock-up, followed by linear vesting over 3 months.
Marketing	5%	Marketing, user growth, and channel expansion. 3-month lock-up, followed by linear vesting over 3 months.

Note: Specific allocation ratios may be adjusted at the Token Generation Event (TGE) stage.

4. Deflationary & Value Growth Mechanisms

• Revenue Buyback: A portion of quarterly protocol profits will be used to buy back and burn $MONEY.

• Dynamic Emission Reduction: The incentive pool will follow a pre-set decaying release curve, gradually decreasing emissions year-over-year to control long-term inflation.

• Staking Requirement: Core protocol functions and governance rights require $MONEY staking, increasing long-term holding demand.

• Vesting & Unlocking: Team, marketing, and ecosystem partners will be subject to rational lock-up periods and vesting schedules to ensure healthy token circulation in the market.

5. Ways to Earn $MONEY

• Early Participants Early seed users of the protocol may receive $MONEY airdrop rewards for participating in new feature testing, contributing to community building, and supporting protocol promotion.

• Protocol Users Users who engage in protocol services (such as collateralized lending, fiat on/off ramp, liquidity provision, etc.) can earn $MONEY rewards.

• Staking $MONEY Users who stake $MONEY will receive staking rewards based on their staking amount and duration.