# Tokenomics This section provides a comprehensive breakdown of the $VTN tokenomics, delving into the intricacies of how the token operates and its various functions within the ecosystem. It describes the categories allocated with tokens and its supply:
### **Token Allocation (%) by Category**
### **Emissions** Emissions are considered a valuable metric for evaluating the impact of token releases on the market, as selling pressure is generally anticipated when tokens become available. This is why we have defined cliff and vesting periods to monitor and manage this potential selling pressure. However, it's important to note that not all token allocations result in immediate token sales upon unlocking. For instance, tokens designated for marketing, ecosystem development, and other categories may be unlocked but held in reserve for future use. Considerations in the Unlock Schedule design: * The unlock schedule is designed to align with the growth projections of users, developers, and service providers in the Vottun Ecosystem by implementing vesting periods aligned with these estimates. * Unlocks that could increase the circulating supply by more than 1.5% are avoided, as this could potentially have a negative impact on prices. * Following market trends observed in other projects, it is recognized that token prices may experience greater volatility at the beginning of the unlock schedule due to the project's early stages. Over time and as results are achieved, stability tends to prevail. Therefore, "Cliff" and "Vesting" periods have been implemented to mitigate this effect. * It's important to note that while tokens are unlocked linearly, their introduction to the market may be subject to market timing and sentiment.
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