> For the complete documentation index, see [llms.txt](https://armorfi.gitbook.io/armor/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://armorfi.gitbook.io/armor/usdarmor-token/liquidity-and-utilization-rewards.md).

# Liquidity and User Rewards

## Reward Allocation

14.25% of the total ARMOR token supply (142,500,000 tokens) will be allocated to the launch Liquidity and User Rewards. OF this,&#x20;

* 89.5% (12.75% of total supply) is allocated to Liquidity Providers and User Growth (LP\&UG)
* Up to 1% of total supply may be used to kickstart DEX liquidity. This LP will not be used to farm ARMOR. These tokens may be returned to the DAO treasury once sufficient liquidity has been established.
* 0.5% reserved for airdrop to Gitcoin donors and NXM, DIP, SAFE, and COVER holder

The rewards allocations can be found here.&#x20;

### Emissions Model

Farming will last 2 years. Farming rewards per week will be optimized based on market data and community feedback. The initial farming rewards are set to 1.5M ARMOR per week for all LP & UG rewards. Each subsequent week, the rewards will be reduced by 0.51% from last week.

Note: arNFT staking will receive a 1.5X rewards from March 7, 2021 onwards and until further notice.

## Liquidity Provider and User Growth Rewards (LP\&UG)

The **distribution mechanism** for these rewards (12.75% of the total token supply) will be based on a continual accrued distribution proportional to contribution of the stakeholder to the objectives.

* 85% of these (10.8375% token supply) $ARMOR to liquidity providers (LPs)
* 15% of these (1.9125% token supply) to user growth and adoption (UG)

The **goal of the LP\&UG reward programs** is to enable the contributors and the users of the Armor protocol to become its owners through the Armor DAO.&#x20;

Contributors and customers vote for the protocol with their wallets, as their chosen method to generate a return and/or protect their assets.

#### They must have the opportunity to influence the future of Armor and own the protocol.


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