> For the complete documentation index, see [llms.txt](https://docs.helalabs.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.helalabs.com/ecosystem-overview/hela-tokenomics.md).
# HeLa Tokenomics
The HeLa tokenomics has been carefully crafted with a single, overarching objective: to create an economical system that aligns the incentives of all participants within the HeLa ecosystem. This tokenomics paper details the core components of HeLa's economy. For an in-depth look at HeLa’s technical design, please take a look at the HeLa documentation.
## Core Participants of HeLa
### Users
Users perform various actions on HeLa, such as managing digital assets, engaging with smart contracts, and using advanced applications. HeLa offers stable gas fees in HLUSD, which is vital for sustaining Web3 ecosystems by shielding them from the fluctuations in gas fees. Additionally, HeLa’s modular architecture provides both scalability and flexibility, enabling developers to integrate different modules to build tailored solutions with consistent and low transaction costs.
### Validators
**Validator and Node Operator Incentives** \
HeLa utilizes a dual-layer reward model that aligns network security with ecosystem growth. \
\
**Consensus Layer Rewards ($HELA)** \
Validators secure the network through staking and participation in the Tendermint BFT consensus process. In return, they earn $**HELA token rewards** for proposing and validating blocks, maintaining network security, and ensuring transaction finality. Delegators can also stake $HELA with validators and share in these rewards. \
\
**Execution Layer Rewards (HLUSD)** \
Compute nodes on the Execution Layer process transactions and execute smart contracts. These nodes earn a share of **HLUSD transaction fees**, creating a sustainable reward mechanism directly tied to network usage and application activity. \
\
**Incentive Alignment** \
This dual-reward structure incentivizes both long-term network security and ecosystem adoption. **HELA rewards** encourage staking and decentralization, while **HLUSD rewards** increase with transaction volume, motivating node operators to support developer growth, user adoption, and real-world usage of the HeLa ecosystem.
### $HELA Token
HeLa’s native token, $HELA, has a finite supply, distinct from HLUSD, which is a stablecoin backed by a basket of currencies and used as the gas token on HeLa Chain. Holders of $HELA can partake in the network’s revenue-sharing program, offering them exclusive economic benefits. Additionally, $HELA holders are granted governance rights, allowing them to participate in crucial decision-making processes for HeLa Chain, such as approving builder grants, protocol upgrades, and fee adjustments. $HELA holders will be pivotal in shaping the future of HeLa Chain!
## Critical Roles of $HELA in HeLa Chain
$HELA is a scarce asset with a fixed supply of 360 million. The core utility of $HELA can be split into three components.
### Incentives
HeLa Chain plans to introduce $HELA incentive programs designed to identify, motivate, and reward exemplary behavior among its participants. This includes builders who develop applications, community members who contribute to the ecosystem, and validators who maintain the network. These programs aim to encourage transparency, integrity, and positive engagement, ensuring that those who demonstrate honesty and contribute constructively to the ecosystem are recognized and incentivized. By aligning rewards with desirable actions and contributions, HeLa Chain fosters a thriving, collaborative environment for all its ecosystem members.
### Revenue Share
$HELA token holders have the opportunity to participate in the network’s revenue-sharing program.
Simply by staking and delegating your $HELA tokens, users will be able to accrue yield generated via a series of core dAPPs built natively on HeLa Chain, through various ecosystem grants that HeLa Chain will provide in due course.
### Governance
$HELA token holders play an active role in influencing the core dApps (protocols) via governance processes, which include:
* Voting on core dApp bribes and emissions
* Allocating grant incentives from the Governance Fund
* Awarding grants to developers of third-party dApps on HeLa Chain
This open and equitable decentralized governance model guarantees that the interests of $HELA token holders are well-represented.
## $HELA Token Distribution
**The total supply of $Hela tokens is capped at 360,000,000.**
| Category | Percentage | Description |
| --------------------------------- | ---------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **HeLa Guardian Node Incentives** | 12% | A series of airdrops and 48-months linear vesting model of $HELA emission. Find out more in [HeLa Guardian Node](https://docs.helalabs.com/hela-node/hela-guardian-node) section. |
| **Ecosystem & Community** | 38% | Proactive programs, developer contributions, grants, and incentives designed to stimulate community participation and ecosystem development. |
| **Early Backer** | 15% | Early backers who supported the HeLa Chain vision and provided the necessary funding to build and grow the ecosystem. Linearly vested over 48 months. |
| **Partner & Advisor** | 10% | Distributed to advisors, developers, partners and individuals who actively contribute to HeLa’s growth. Linearly vested over 48 months. |
| **Team & Founders** | 10% | Tokens allocated to the core team and founders through a 48-months distribution cycle. |
| **Foundation** | 15% | Tokens allocated to providing initial and ongoing liquidity into DEXs & CEXs, as well as allocation for marketing & partnership expenditure. Vested immediately. |
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