> For the complete documentation index, see [llms.txt](https://docs.satlayer.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.satlayer.xyz/slay/the-slay-token/tokenomics.md).

# Tokenomics

The distribution of SLAY is structured to ensure long-term alignment between the community, ecosystem participants, and early supporters.

<figure><img src="/files/5c3DkOcjj5dCtibuPRgk" alt=""><figcaption></figcaption></figure>

### **Community – 10%**

Distributed through the flagship **SlayDrop** and other Token Generation Event (TGE) initiatives to broaden community ownership.

### **Ecosystem – 45%**

Reserved to accelerate growth of the SatLayer ecosystem, including:

* **Incentives** – Rewards for BTC stakers securing BVSs
* **Investments** – Strategic capital for teams building on SatLayer, subject to approval by a joint SatLayer Labs and SatLayer Foundation committee
* **Grants** – Milestone-based funding for ecosystem projects that contribute to long-term protocol development

### **Foundation – 10%**

Allocated to the SatLayer Foundation to support ongoing research, development, and global adoption of the Protocol.

### **Early Backers – 15%**

Designated for strategic partners and financial supporters who provided early backing for the launch of SatLayer.

### **Early Contributors – 20%**

Reserved for builders and contributors across engineering, product, business development, marketing, and strategy who laid the foundation of the Protocol.