Tokenomics

Tokenomics refers to the economic aspects of a blockchain project. This section summarizes the key components to the Yeti-Apes tokenomics structure, designed to support the entire ecosystem.

Yeti-Apes utilizes a dual-token governance and utility model to support the future growth and long-term sustainability of the ecosystem.

The two tokens are as follows:

• Yoints (Purpose: Governance, Total Supply: 100,000,000): Ensures holders are integral to the Yeti-Apes decision-making process, giving them the ability to both submit and vote on proposals for the future growth and direction of the Yeti-Apes ecosystem.

• Yapes (Purpose: Governance Expansion and Utility, Total Supply: 21,000,000): Critical utility token that is intended to be used across every developed ecosystem product and be the predominant pathway to increasing governance rights in the ecosystem. This ensures users of the ecosystem are the decision makers.

The below diagram summarizes the Yeti-Apes tokenomics flow at launch:

The Yeti-Apes ecosystem is decentralized with all initiatives and decisions voted on by Yoints stakers. The model allows users to expand their governance rights over time and use Yapes across the ecosystem.

The main objectives for the dual-token governance and utility model are as follows:

• Decentralized Governance: Yoints is the governance token, aligning project needs and decision-making processes. Stakers both propose and approve all Yeti-Apes initiatives. Staking pools also allow users to increase their voting power and the utility token that can be used across products.

• Long-Term Commitment: Encourage long-term commitment to the ecosystem among Yoints and Yapes users.

• Utility and Integration: Yapes is designed to be a utility token, used across ecosystem products. It is also the primary way to grow voting rights through staking in the Yapes Staking pool.

• Community Engagement and Distribution: Promote community engagement and equitable distribution of tokens.

• Alignment between holders and Governance: Align token holders with governance processes to drive ecosystem development.

The below illustrates the conceptual build and interactions of the Yeti-Apes contracts. This is subject to change as design requirements evolve over time with final sign off through the Yeti-Apes governance system:

High-level illustration of Yeti-Apes contract interactions

The following depicts the currently planned allocation of token supply at launch:

Significant analysis has been completed to ensure best-industry practices for the supply allocation of the Yeti-Apes ecosystem.

The following defines the terminology of the token allocation:

• Ecosystem Expansion: This portion of supply will be reserved for initiatives which expand the Yeti-Apes ecosystem and support its sustainability. It's use will be determined by community proposals put forward and approved by the governance system.

• Fair Launch: These are the allocations to presale participants. This supply will initialize governance and utility of the tokens for the ecosystem. The purpose of this presale is purely to circulate tokens to the participants who will form the governance of the ecosystem and become users of products. The presale should not be seen as a means to generate any current or future profit for investors. Any increases in price of the tokens will be established by the general crypto market.

• Liquidity: A liquidity pool will be established for both tokens to allow for a decentralized market. This is critical to allow future users to be able to participate in the Yeti-Apes ecosystem. Analysis has been conducted to ensure an appropriate initial portion of tokens has been allocated for this purpose.

• Community LP : This is additional supply to be allocated for users who choose to contribute liquidity voluntarily to the liquidity pools. Contributing liquidity comes with some risk, so we recommend users conduct research on LP provision before participating.

• Staking Pool: Both staking pools will be allocated with an annual supply of tokens in order to establish growth in ecosystem governance. It should be noted that Yoints will have a dynamic reward system thanks to the distribution of fees that go to the staking pool. The purpose of staking is to give opportunities to ecosystem participants to increase their governance voting share, as well as token allocation to maximize their use in current and future products.

• Collaborators: An allocation has been set aside for the collaborators in order to establish initial governance, with vesting rules put in place to ensure long-term commitment between these collaborators and the Yeti-Apes community. The purpose of the collaborators is to assist in the support and growth of the Yeti-Apes ecosystem. All proposals and decisions will be conducted by the Yeti-Apes governance system. After the mandatory cliff and vesting periods, tokens can be utilized as needed.

• Marketing & Partnerships: Supply has been allocated to assist with marketing efforts and also to build partnerships that will allow for growth in exposure and utility. Vesting rules have been put in place for this reward supply.