# Incentives

## Emission Rewards <a href="#purpose-of-emission-rewards" id="purpose-of-emission-rewards"></a>

AskTrady allocates emission rewards to incentivize the creation, support, and success of high-performing Trady AI Agents. This mechanism ensures the development of superior trading agents that deliver consistent value to their co-owners and users.

* **Fostering Competition:** Emission rewards are designed to encourage creators and communities to develop innovative and effective trading agents by rewarding the best-performing liquidity pools.
* **Quality and Productivity:** By incentivizing the top agents, AskTrady ensures users have access to efficient, accurate, and valuable trading tools, fostering trust and engagement within the ecosystem.

#### Mechanism of Emission Rewards <a href="#mechanism-of-emission" id="mechanism-of-emission"></a>

* **Emission Allocation:**
  * Rewards are allocated to liquidity providers of agent-specific tokens (e.g., $TRADEBOTX).
  * The allocation is weighted based on the size of the liquidity pool, ensuring larger pools receive proportionally higher rewards.
* **Eligibility**:
  * Only the top three profitable AI Agents are eligible for emission rewards.
  * Governance mechanisms can later decide to expand the number of rewarded pools.
* **Emission Schedule**:
  * For the first 12 months, 60,000,000 $TRADY tokens are proposed to be distributed as emissions (subject to governance approval).
* **Distribution to Liquidity Providers:**
  * Rewards are distributed proportionally within the eligible pools, incentivizing liquidity providers to support the most successful and active trading agents.

#### Benefits of the Emission Mechanism <a href="#benefits-of-the-emission-mechanism" id="benefits-of-the-emission-mechanism"></a>

* **Enhanced Liquidity**: By encouraging liquidity in the top-performing agent pools, AskTrady improves token market efficiency, making it easier to trade and co-own these agents.
* **Agent Performance Motivation:** Creators are driven to continuously improve their AI agents, ensuring they remain competitive and productive within the ecosystem.
* **Ecosystem Growth**: This mechanism drives the overall growth and robustness of AskTrady, aligning incentives across creators, co-owners, and liquidity providers to create a thriving, sustainable trading ecosystem.

By aligning emission rewards with the performance of liquidity pools, AskTrady ensures that its ecosystem grows organically around the most successful AI agents, rewarding innovation, efficiency, and value creation.
