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

# MACRO Tokenomics

<figure><img src="https://65980210-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEqKZCpzXxMqVnsjoFNmm%2Fuploads%2FZN6j690hv5Sn2ilJgEvu%2Fimage.png?alt=media&amp;token=f6eabb98-f563-4a8c-a222-a4760926b949" alt=""><figcaption></figcaption></figure>

**Overview**

The MACRO token ($MACRO) is the native token of the Macro protocol, a Morpho-powered lending system built on the Base chain. Designed to address liquidity challenges for prominent Base assets such as $TOSHI, $KTA, and $SKI, Macro enables users to lend or borrow without liquidating their holdings. This fosters a vibrant ecosystem where participants can unlock value from their assets while contributing to the protocol's growth and stability.

**Token Supply and Distribution**

The total supply of $MACRO is 1,000,000,000. The supply is capped to prevent inflation, with potential deflationary burns tied to protocol activity, and is broken down in the following distribution:

* Liquidity Provision: 50% - Allocated to initial liquidity pools on Base DEXes such as Aerodrome and Uniswap to ensure smooth trading.
* Treasury: 20% - Reserved for protocol operations, including partnerships, marketing, rebates, and future bond sales.
* Team and Advisors: 15% - Vested to align with long term incentives.
* Community Rewards and Airdrops: 15% - Distributed via staking rewards and voting.

<figure><img src="https://65980210-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEqKZCpzXxMqVnsjoFNmm%2Fuploads%2FWxprUxSGvlDayevaZaPh%2Fpie%20chart%20macro%202.jpg?alt=media&amp;token=720a1a8f-5a88-4099-a537-fc1449d0b634" alt=""><figcaption></figcaption></figure>

Tokenomics in Macro are structured to align incentives across various user roles: voters, stakers, holders, lenders, and borrowers. By integrating revenue sharing and speculative elements, $MACRO encourages long-term participation and ecosystem expansion.

**Key principles include:**

* Deflationary elements: Mechanisms such as potential burns to manage supply.
* Game theory integration: Roles are designed to balance risk and reward, promoting active engagement.
* Revenue generation: Platform fees from lending and borrowing activities feed into rebates and staking rewards.
* Participation-driven: Community decisions influence rebates and market selections for optimal yield.

The total supply of $MACRO is deflationary with allocations aimed at bootstrapping liquidity, rewarding early adopters, and ensuring sustainable growth.