> ## Documentation Index
> Fetch the complete documentation index at: https://docs.cove.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Information

> $COVE — A non-transferable protocol governance token

<img className="block dark:hidden" src="https://mintcdn.com/stormlabs/qew6jsW71Sw-JZvn/images/headers/light-cove.svg?fit=max&auto=format&n=qew6jsW71Sw-JZvn&q=85&s=241ddf3d90a88e5524db2a71c19def37" alt="$COVE Light" noZoom width="1065" height="383" data-path="images/headers/light-cove.svg" />

<img className="hidden dark:block" src="https://mintcdn.com/stormlabs/qew6jsW71Sw-JZvn/images/headers/dark-cove.svg?fit=max&auto=format&n=qew6jsW71Sw-JZvn&q=85&s=9022f306210f10c7164af6b9152ac070" alt="$COVE Dark" noZoom width="1065" height="383" data-path="images/headers/dark-cove.svg" />

## Token Overview

\$COVE is the protocol's governance token. It is currently non-transferable for a
minimum of 6 months, after which the DAO can vote to enable transfers. After 18
months, anyone may enable transfers.

<Note>
  At the moment, \$COVE is non-transferable and only used for voting in protocol
  governance. In the future, we expect governance proposals to enable transfers
  and add additional utility and tokenomics.
</Note>

<br />

<Frame caption="The initial $COVE token distribution">
  <img className="block dark:hidden" src="https://mintcdn.com/stormlabs/qew6jsW71Sw-JZvn/images/light-tokenomics.svg?fit=max&auto=format&n=qew6jsW71Sw-JZvn&q=85&s=af6f41238f5b1265aa5bd68c12af179f" alt="Token Distribution Light" noZoom width="1200" height="675" data-path="images/light-tokenomics.svg" />

  <img className="hidden dark:block" src="https://mintcdn.com/stormlabs/qew6jsW71Sw-JZvn/images/dark-tokenomics.svg?fit=max&auto=format&n=qew6jsW71Sw-JZvn&q=85&s=f8aa26f13f68baf1eab9bfcf777babb3" alt="Token Distribution Dark" noZoom width="1200" height="675" data-path="images/dark-tokenomics.svg" />
</Frame>

## Initial Distribution

The initial supply of 1 billion \$COVE has been minted at genesis and will become
available over the course of 3 years. The initial distribution is as follows:

* **55% to Community**
  * **0.5%** to Community multisig signers, with 1-year linear vesting.
  * **0.95%** to the Bazaar launchpad auction, with 1-year linear vesting.
  * **8%** for 1st-year liquidity mining incentives. At the community multisig's discretion, unused tokens will be returned to the treasury after 1 year.
  * **30.55%** to the Community treasury, with 3-year linear vesting.
  * **15%** to the Foundation.
* **45% to current and future team, investors, and advisors**
  * Investors have a 2-year linear vesting period.
  * Team and advisors have a 3-year linear vesting period.

## Token Specification

<Info>
  The source code for the token can be found on Github
  [here](https://github.com/Storm-Labs-Inc/cove-contracts-boosties/blob/master/src/governance/CoveToken.sol)
  or on Etherscan
  [here](https://etherscan.io/address/0x32fb7D6E0cBEb9433772689aA4647828Cc7cbBA8#code).
</Info>

* Name: Cove DAO
* Ticker: COVE
* Initial supply: 1B
* Modifiers
  * Ownable/governance
  * Permit
  * Pausable
    * Non-transferable for 18 months (anyone can unlock after)
    * DAO can vote to enable transfers after 6 months
* Additional functionality
  * Rescue function for ETH/ERC20s
  * Transfer allowlist
  * Max 6% per year starting after 3 years ([ARB style inflation](https://docs.arbitrum.foundation/airdrop-eligibility-distribution))