Tokenomics

AFH Tokenomics

The AFH Tokenomics model is designed to drive sustainable growth, promote widespread adoption, and provide long-term value for both businesses and users. With a fixed supply, deflationary mechanisms, and a carefully planned token distribution, AFH is set to become a leading utility token in the decentralized loyalty program space.

1. Total Supply: Fixed at 1,411,808,500 AFH Tokens
Rationale for Fixed Supply: A fixed supply creates natural scarcity, driving the value of AFH upward as demand increases with more businesses and users joining the ecosystem.
2. Token Allocation AFH token allocation is structured to ensure growth, liquidity, and sustainable development, balancing immediate liquidity needs with long-term growth incentives.

Token Distribution Breakdown:

Public Sale (50%):
705,904,250 AFH
will be allocated for public sale to ensure liquidity and wide distribution. Pre-Sale 1: 10% (141,180,850 AFH) will be sold at 50 Ksh (0.39 USD) per AFH during the first pre-sale to build initial momentum and drive adoption.
Pre-Sale 2 & Future Sales: 40% (564,723,400 AFH) will be gradually released in additional pre-sale rounds and public market listings at various stages to balance liquidity and token distribution. Each sale will progressively increase in price based on market demand and ecosystem growth.
Ecosystem Development & Partnerships (15%):
211,771,275 AFH
allocated for ecosystem expansion and partnerships. This will be used to incentivize businesses, influencers, and strategic partners who integrate AFH into their loyalty systems, thus expanding AFH's utility and reach.
AFH Foundation & Team (10%):
141,180,850 AFH
reserved for the founding team and core contributors, with a 4-year vesting schedule(1-year cliff) to ensure long-term commitment and alignment with project goals.
- Rewards & Airdrops (2%):
28,236,170 AFH
allocated for early adopters, promotional campaigns, and airdrops to drive initial awareness and engagement with the community.
Reserve & Staking Incentives (23%):
324,715,955 AFH
reserved for liquidity management, staking rewards, governance through the DAO, and expansion to additional blockchain networks (e.g., Ethereum, Solana, Avalanche, Ton and Base)

3. Utility of AFH Token

AFH is designed to serve as a multi-utility token, unlocking numerous use cases for users and businesses in the ecosystem:
Loyalty Rewards: Users earn AFH tokens for purchases made across partnered entities, which can be redeemed for discounts, exclusive offers, or other services within the marketplace.
Marketplace Transactions: AFH tokens can be used as payment for products, services, and event tickets within the marketplace. Flexible payment options allow users to combine AFH with fiat currency, offering convenience and flexibility.
Discounts & Exclusive Access: Businesses provide special discounts and exclusive deals for customers paying with AFH tokens, encouraging wider adoption and circulation.
Governance in AFH DAO: AFH token holders participate in the governance of the ecosystem through a Decentralized Autonomous Organization (DAO), enabling them to vote on important proposals, partnerships, and strategic directions.
Staking & Yield Farming: AFH holders can stake their tokens to earn rewards or participate in liquidity farming, increasing their holdings while supporting the ecosystem’s stability.

4. Deflationary Mechanisms

To ensure long-term value growth, AFH incorporates deflationary features that reduce circulating supply over time:
Token Burns: A portion of AFH tokens used in transactions within the marketplace (e.g., purchases, staking, exclusive services) will be burned, reducing the total supply and driving up scarcity.
Buyback Programs: A percentage of ecosystem profits will be used to periodically buy back AFH tokens from the market, further reducing supply and supporting token value.

5. Vesting & Lock-up Periods

To prevent market saturation and ensure sustainable token release, vesting schedules and lock-up periods are implemented:
Team & Foundation Tokens: Tokens allocated to the founding team and contributors will be vested over a 4-year period with a 1-year cliff, aligning incentives with the long-term success of the project.
Ecosystem Development & Reserve Tokens: The tokens reserved for ecosystem expansion, staking, and governance will be gradually released over time to avoid market oversupply and ensure a steady flow of incentives.

6. Liquidity Provision & Market Stability

Ensuring sufficient liquidity and maintaining market stability are essential for the success of AFH:
Liquidity Pools: AFH tokens will be paired with major cryptocurrencies such as Binance Coin (Binance Smart Chain) and ETH to ensure robust liquidity on decentralized exchanges (DEXs) and centralized exchanges (CEXs).
Strategic Market Making: Partnerships with market makers will help minimize volatility, ensuring smooth trading and price stability across different markets.

7. Governance through AFH DAO

AFH is built on a decentralized governance model where all token holders have a say in the project’s future:
Proposal Submission: Any AFH token holder can submit governance proposals, whether it’s for new partnerships, product expansions, or ecosystem improvements.
Voting Power: Voting power is proportional to the number of AFH tokens held, ensuring that participants with a significant stake in the ecosystem have a strong influence on decisions.
Free Participation: Voting within the DAO is completely free—anyone holding AFH tokens is eligible to participate and help shape the ecosystem.

8. Future Scalability & Multi-Chain Expansion

AFH is built with scalability and global reach in mind, ensuring it can grow alongside its ecosystem:
Cross-Chain Integration: Initially launched on the Binance Smart Chain,AFH will expand to other major blockchains such as Ethereum, Solana, Avalanche,Ton and Base increasing its utility and accessibility across different platforms.
Interoperability: AFH tokens will be interoperable across multiple chains, allowing for seamless transfers and broader adoption across diverse blockchain ecosystems.

9. Value Appreciation through Demand-Driven Growth

The AFH tokenomics model is designed to create natural demand as the ecosystem expands:
Increasing Demand: As more businesses and users join the ecosystem, the demand for AFH tokens will rise, driven by its utility as a loyalty token and governance token within the DAO.
Limited Supply: With a fixed supply and deflationary mechanisms in place, AFH will experience natural scarcity, which will drive its value upward over time.
Global Reach: The AFH ecosystem aims to onboard a wide variety of businesses across different industries and regions, ensuring that AFH becomes a universal loyalty token that transcends geographical boundaries.

AFH's Tokenomics is meticulously designed to ensure scalability, sustainability, and value appreciation. By balancing supply with demand, implementing deflationary mechanisms, and providing multiple use cases, AFH is set to become a leading utility token for loyalty programs across industries. With governance powered by the community through the DAO, and future multi-chain expansion, AFH provides a robust, long-term growth model that offers real value across a decentralized,global ecosystem.

AFH ALLOCATION