# Release Mechanisms

{% hint style="info" %}
This feature is only available to **Pro** users.
{% endhint %}

## Overview

Understanding *who* gets a project's tokens (the allocation) is only half the story. The *how*, i.e., the specific method by which those tokens are distributed, is just as critical for assessing emissions and long-term incentives.

To this end, Tokenomist introduces **Release Mechanisms**, a standardized classification system for token distribution methods. This allows you to analyze not just which stakeholders get tokens, but also the mechanics of how those tokens are released.

## Methodology

#### **Definitions**

Our system categorizes all distribution methods into one of the following eight standard mechanisms:

| Release Mechanism                      | Definition                                                                                                                                         |
| -------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Airdrop & Retroactive Rewards**      | Free token distribution to users based on eligibility, promotions, or past participation. Used to bootstrap communities and reward early adopters. |
| **Auctions & Sales (ICO/IDO/IEO)**     | Tokens sold via structured fundraisers like public sales (ICOs, IDOs, IEOs), with either fixed or auction-based pricing.                           |
| **Vesting & Time-Locked Distribution** | Gradual token release over a predetermined period. Used to control selling pressure and align long-term incentives for teams and investors.        |
| **Mining & Validators**                | Tokens awarded for securing the network through Proof-of-Work (mining) or Proof-of-Stake (staking), rewarding participation in network consensus.  |
| **Yield Farming**                      | Tokens awarded to users for providing liquidity to a protocol, incentivizing capital for DeFi ecosystems.                                          |
| **Initial Liquidity**                  | Tokens allocated as starting liquidity on trading platforms to ensure sufficient market depth at launch.                                           |
| **Activity Based**                     | Tokens distributed based on specific user actions, such as task completion, referrals, contests, or governance participation.                      |
| **Others**                             | Alternative or unique distribution methods that do not fit into the standard categories above.                                                     |

#### Example #1: Liquidity Mining Program

* **Scenario:** A new DeFi protocol allocates tokens to a "Liquidity Mining Program," with tokens distributed through user participation in farming pools.
* **Analysis:** Liquidity mining is a type of yield farming with the underlying purpose of rewarding users for providing capital and engaging with the protocol.
* **Our Categorization:** `Liquidity Mining Program` is classified under **Yield Farming.**

#### Example #2: Early Backers & Team

* **Scenario:** A new Layer 1 blockchain lists allocations for "Early Backers & Team," with tokens locked and gradually released over time.
* **Analysis:** Early backer and team allocations typically involve vesting schedules or time-locks to align long-term incentives and prevent large, immediate sell-offs. While project documents may use varying labels, the mechanism is a standard vesting distribution.
* **Our Categorization:** `Early Backers & Team` is classified with a **Vesting & Time-Locked Distribution** release mechanism.

## Accessing Release Mechanisms

{% hint style="info" %}
Under construction
{% endhint %}

## Using Release Mechanisms

{% hint style="info" %}
Under construction
{% endhint %}


---

# 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.unlocks.app/methodology/release-mechanisms.md?ask=<question>
```

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.