> For the complete documentation index, see [llms.txt](https://docs.layertao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.layertao.com/payments-and-usdlayertao/editor-1.md).

# $LAYERTAO

$LAYERTAO is the native utility token of the LayerTao ecosystem. While not required to use the platform, it enhances participation and unlocks additional benefits.

$LAYERTAO is an ERC-20 token with a fixed maximum supply of 100,000,000 tokens. The supply is non-inflationary and cannot be minted beyond this cap.

A 5% fee is applied to both buy and sell transactions. This mechanism supports ongoing operations, ecosystem incentives, and sustained awareness and growth initiatives for LayerTao.

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### Token Structure

LayerTao is designed to ensure investor confidence and long-term security while maintaining a strong focus on sustainable growth. Below is a clear breakdown of how $LAYERTAO tokens are allocated across the ecosystem.

<table><thead><tr><th width="157.4285888671875">Type</th><th width="461.857177734375">Tokens</th><th>Status</th></tr></thead><tbody><tr><td>Liquidity</td><td>70,000,000</td><td>Locked</td></tr><tr><td>Treasury</td><td>10,000,000</td><td>Locked</td></tr><tr><td>Reserve</td><td>5,000,000</td><td>Locked</td></tr><tr><td>Marketing</td><td>10,000,000</td><td>Vested</td></tr><tr><td>Incentives</td><td>5,000,000</td><td>Vested</td></tr></tbody></table>

The following outlines how these allocations are utilized to support the growth of the LayerTao ecosystem, aligning incentives and delivering long-term value to the entire community.

<table><thead><tr><th width="374.5714111328125">Treasury</th><th>Reserve</th></tr></thead><tbody><tr><td>Treasury tokens are locked for one year and deployed to support the ecosystem, rewarding partners, community, founders, and contributors directly aligned with LayerTao. Their use remains tied to the sustained growth of LayerTao.</td><td>Reserve tokens act as a safeguard against unforeseen events. They are locked for one year and may be relocked annually based on LayerTao’s progress and overall conditions, ensuring stability and serving as a buffer following periodic evaluations.</td></tr></tbody></table>

<table><thead><tr><th width="374.5714111328125">Marketing</th><th>Incentives</th></tr></thead><tbody><tr><td>Marketing tokens are allocated to strengthen partnerships, accelerate growth, and ensure LayerTao expands at a steady pace. They support visibility, and reward strategic partners contributing to the network’s development.</td><td>Incentive tokens are distributed to the community in recognition of meaningful contributions across testing, competitions, and other initiatives, fostering participation and aligning contributors with the long-term growth of LayerTao.</td></tr></tbody></table>