# VAC Token

## The VAC Token

The Vacuum Finance token ($VAC) while staked and non tradeable is a perpetual claim on the income derived by the Vacuum Finance protocol. There is no protocol treasury, but all profits (revenues minus gas costs) made by the protocol are instead distributed to $VAC stakers. The mechanism is very similar to tokenomics pioneered by Curve.finance and then slightly altered by Ellipsis.&#x20;

![](/files/0yfMPqdVLmWsyQjFnm8w)

## Tokenomics

There is a total supply cap of 100m $VAC.&#x20;

15% is reserved for airdrops and similar incentives. A portion will go out immediately, and then the rest will be earmarked for future incentives to drive attention and volume to the platform at the discretion of the VAC team.&#x20;

35% will be distributed to individuals that use the platform, as an additional incentive to kickstart the platform volume and layer two adoption.

20% will be used to incentivize the VAC/ETH liquidity pair, linearly distributed with a forked synthetix staking contract over a period of five years. &#x20;

20% is reserved for the team, and will be vested linearly over a year.&#x20;

10% is reserved for investors and advisors, and will be vested linearly over a year.&#x20;

![](/files/1VhQzoBSVtCaoMGWKjsd)


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