> ## Documentation Index
> Fetch the complete documentation index at: https://docs.saucerswap.finance/llms.txt
> Use this file to discover all available pages before exploring further.
# SAUCE tokenomics
> SAUCE supply and Phase 1 tokenomics: Masterchef emissions, liquidity rewards, devcut burn, and Unified BrewSaucer revenue routing for the protocol.
SAUCE is the native token of the SaucerSwap protocol, created and managed through the [Hedera Token Service](https://hedera.com/token-service) (HTS).
| Property | Value |
| ----------- | -------------------------------------------- |
| Token ID | `0.0.731861` |
| EVM address | `0x00000000000000000000000000000000000b2ad5` |
| Max supply | 1,000,000,000 SAUCE |
SAUCE is a transferable representation of utility functions in the protocol's code:
* **Governance.** SAUCE and xSAUCE carry voting power in the SaucerSwap DAO — see [Governance](/governance/overview).
* **Liquidity incentives.** The Masterchef contract mints SAUCE to reward V1 farms and V2 [LARI](/protocol/saucerswap-v2#liquidity-aligned-reward-initiative-lari) positions.
* **Staking.** Staking SAUCE for xSAUCE earns a share of protocol revenue and tiered [V3 fee discounts](/protocol/saucerswap-v3/fees) — see [Single-sided staking](/protocol/single-sided-staking).
## Supply structure
At genesis (August 2022), 500 million SAUCE were minted: 200 million entered circulation immediately, and 300 million were locked in non-upgradable vesting contracts owned by the SaucerSwap DAO. The remaining 500 million are minted by the Masterchef contract on a predefined emission schedule.
### Initial supply (distributed at genesis)
A total of 200 million SAUCE was released at genesis. The Liquidity, Marketing, and Operations categories fell under DAO ownership; the Community category was distributed to 729 eligible community members.
| Category | Tokens | % of initial supply | % of max supply |
| ---------- | ----------------- | ------------------- | --------------- |
| Liquidity | 20.0 million | 10.00% | 2.00% |
| Community | 140.0 million | 70.00% | 14.00% |
| Marketing | 20.0 million | 10.00% | 2.00% |
| Operations | 20.0 million | 10.00% | 2.00% |
| **Total** | **200.0 million** | **100.00%** | **20.00%** |
* **Liquidity:** converted to SAUCE/HBAR LP tokens and locked for one year.
* **Community:** airdropped to holders of Planck Epoch Collectible (PEC) NFTs by type and count (Gravity 3,000 SAUCE; Electromagnetic 5,000; Weak Nuclear 14,000; Strong Nuclear 30,000).
* **Marketing and Operations:** sent to DAO-controlled multisigs.
There were no private sales of SAUCE.
### Genesis vesting schedule (completed)
The DAO deployed non-upgradeable vesting contracts holding 300 million SAUCE. The three-year linear vesting schedule ended on July 16, 2025.
| Category | Tokens | % of max supply | Vesting contract |
| ---------------- | ----------------- | --------------- | ---------------- |
| Core development | 240.0 million | 24.00% | `0.0.1059453` |
| Marketing | 20.0 million | 2.00% | `0.0.1059333` |
| Operations | 20.0 million | 2.00% | `0.0.1059313` |
| Advisor | 20.0 million | 2.00% | `0.0.1059259` |
| **Total** | **300.0 million** | **30.00%** | |
The end of a vesting schedule does not guarantee that every vested token has been withdrawn. Checked July 29, 2026: Core Development, Operations, and Advisor held 0 SAUCE; Marketing held 199,961.736852 SAUCE.
## Masterchef emissions
The Masterchef contract holds SAUCE's supply key and mints the remaining emission allocation. Phase 1 of the [SAUCE emission reduction and Unified BrewSaucer proposal](https://gov.saucerswap.finance/t/hbar-usd-perpetuals-sauce-emission-reduction-and-unified-brewsaucer/396), ratified in [election 6360](https://www.saucerswap.finance/governance/elections/6360), reduces its base emission rate by 50%: from 2.113984 to 1.056992 SAUCE/sec, or from 126.83904 to 63.41952 SAUCE/min.
The additive devcut remains 10% of the base rate. Gross issuance therefore also falls by 50%. SAUCE's maximum supply remains one billion tokens.
| Emission stream | SAUCE/sec | SAUCE/min | Annualized SAUCE |
| ----------------------- | --------: | --------: | ---------------: |
| Point-allocated rewards | 1.056992 | 63.41952 | ≈33.33 million |
| Additive devcut | 0.1056992 | 6.341952 | ≈3.33 million |
| Total gross issuance | 1.1626912 | 69.761472 | ≈36.67 million |
Annualized amounts use a 365-day year at the configured rate.
The proposal estimates that the lower rate extends the Masterchef rewards runway by roughly 14 months, from mid-September 2027 to early November 2028. These are modeled terminal periods; later changes to the emission rate can change the endpoint.
### Phase 1 allocation
Masterchef distributes the base rewards through 5,000 allocation points. The devcut is additional to these rewards and does not consume allocation points.
| Reward destination | Allocation points | Share of base rewards | SAUCE/min |
| ------------------ | ----------------: | --------------------: | ---------: |
| V1 farms | 1,200 | 24% | 15.2206848 |
| V2 LARI | 3,500 | 70% | 44.393664 |
| DAO | 300 | 6% | 3.8051712 |
| Total | 5,000 | 100% | 63.41952 |
* V1 farms distribute rewards to LP token stakers according to [farm allocation points](/protocol/saucerswap-v1/farm-weights).
* The Liquidity-Aligned Reward Initiative (LARI) funds [V2 liquidity rewards](/protocol/saucerswap-v2/lari-weights), with per-pool allocations published for each epoch.
* The DAO allocation supports governance-approved liquidity and treasury uses.
Phase 2 is not active. The proposal reserves a later reallocation for the HBAR/USD perpetuals launch, after the market and its supporting contracts, including GMRewardVault, are deployed, audited, and ready. Until that activation, use the Phase 1 allocation above; see the [proposal's activation conditions](https://gov.saucerswap.finance/t/hbar-usd-perpetuals-sauce-emission-reduction-and-unified-brewsaucer/396) for the pending changes.
### Devcut and additional burn
Masterchef sends its additive devcut to a SaucePaymentSplitter. Phase 1 redirects the 30% tranche previously sent to Mothership/xSAUCE to the protocol burn destination. The other 70% retains its existing non-staking distribution.
| Devcut destination | Share of devcut | SAUCE/min | Annualized SAUCE |
| ------------------------------- | --------------: | --------: | ---------------: |
| Burn destination | 30% | 1.9025856 | ≈1.00 million |
| Existing non-staking recipients | 70% | 4.4393664 | ≈2.33 million |
| Total | 100% | 6.341952 | ≈3.33 million |
The redirected SAUCE is newly minted and then sent to burn. This offsets issuance; it is not a market buyback and does not extend the configured emission schedule. This burns approximately one million additional SAUCE per year, alongside the separate revenue-funded burn described below.
## Unified BrewSaucer: buybacks and burn
Unified BrewSaucer applies one downstream allocation to eligible protocol revenue. Each product first resolves its own liquidity-provider compensation, rebates, and discounts; only its eligible protocol share funds SAUCE buybacks.
| Source | Value used for buybacks |
| ------------------- | ----------------------------------------------------------------------- |
| V1 swap fees | Protocol fee-switch share: 1/6 of swap fees |
| V2 swap fees | 1/6 of swap fees by default; the DAO can set a different share per pool |
| V3 order book fees | Taker fees net of maker rebates and applicable trader discounts |
| HBAR native staking | Rewards earned by HBAR held in the WHBAR contract |
Purchased SAUCE is distributed as follows:
| Destination | Share of purchased SAUCE | Use |
| -------------------------------------------------- | -----------------------: | ----------------------------------------------------- |
| Mothership / xSAUCE | 40% | Revenue accrual for SAUCE stakers |
| Development Fund | 30% | Audits, infrastructure, maintenance, and development |
| Burn | 10% | Permanent removal of purchased SAUCE from circulation |
| Protocol-owned liquidity (POL) + Incentive Reserve | 20% | Liquidity support and governance-approved incentives |
| Total | 100% | |
The reserve continues to support HBAR rewards for the V2 SAUCE/HBAR and USDC/HBAR pools at a 50/50 pool-level split. The reward amount varies with the funded budget and is separate from SAUCE LARI allocation points. V3 continues to use maker rebates rather than SAUCE emission incentives.
The 10% BrewSaucer burn uses SAUCE purchased on the market. The additional devcut burn uses newly minted SAUCE; the two streams must be counted separately. Buyback amounts depend on protocol revenue and SAUCE's market price, while the lower emission rate reduces how much new SAUCE enters circulation alongside those buybacks.
## Historical appendix: the original (pre-V2) model
The original model released 20% of max supply at genesis — categorized at the time as liquidity (2%), airdrops (14%), faucet and giveaways (2%), and DAO treasury (2%) — and emitted the remaining 80% linearly over three years at a constant combined rate of approximately 507.36 SAUCE per minute across vesting and Masterchef streams.
Because Hedera has no block concept, emissions were defined per minute (Hedera maps `block.timestamp` to the transaction consensus timestamp).
| Stream | % of max supply | SAUCE/min |
| ---------------------------- | --------------- | ---------- |
| Team (vesting) | 24.0% | 152.21 |
| Advisor (vesting) | 2.0% | 12.68 |
| Marketing (vesting) | 2.0% | 12.68 |
| DAO treasury (vesting) | 2.0% | 12.68 |
| LP farm rewards (Masterchef) | 50.0% | 317.10 |
| **Total** | **80.0%** | **507.36** |
From genesis to V2 launch, pool rewards were approximately 317.10 SAUCE per minute, with an additive 10% devcut. The Tokenomics V2 proposal (approved August 8, 2023) reduced the pool-reward rate to 126.83904 SAUCE per minute at V2 launch and changed the allocation model.
Exact projected category totals at full emission are intentionally omitted. The historical planning workbook's component formulas and scenario totals do not fully reconcile, and governance can change future allocation points or emission parameters. On-chain supply and contract balances remain the authoritative current-state record.
## Next steps
Where buyback revenue compounds for SAUCE stakers.
The order book fee flow behind buybacks and burns.
How the DAO adjusts emissions and treasury flows.
Current per-epoch reward allocations.