# Tokenomics ### Overview $CAP is the governance and utility token of Cap with a fixed supply of 10 billion tokens. Token holders can exercise decision-making rights over core protocol parameters. \ \ Revenue generated will be used to conduct discretionary buybacks *** #### Governance Rights $CAP holders vote on the following protocol decisions: 1. Adding/removing reserve assets for cUSD 2. Adding/removing collateral assets eligible for underwriting 3. Adjusting liquidation thresholds on approved collateral 4. Adjusting the minting fee on cUSD 5. Whitelisting institutions as borrowers in the private credit marketplace 6. Setting maximum coverage limits for financial guarantee surety exposure *** #### Token Allocation | Allocation | % of Supply | | --------------------- | ----------- | | Ecosystem & Community | 47.97% | | Private Investors | ≤20.00% | | Project Team | ≤20.00% | | ICO | 5.00% | | Private TVL Deals | 3.75% | | Echo Community Sale | 3.28% | *** #### Supply Schedule The circulating supply at TGE consists of the ICO allocation (5%) and 8% from the Ecosystem & Community allocation, summing up to roughly 13% of total supply. Cliff-gated allocations (Private Investors, Project Team, Echo Community Sale) commence unlocking 12 months post-TGE. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.cap.app/overview/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.