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

# App Tokens

> Token creation, distribution, transfer tax, and lifecycle for Elata apps.

## How App Tokens Work

Each Elata app receives its own ERC-20 token with a fixed supply of **10,000,000 tokens**. The token is created during Phase B of the [launch process](/apps/build/launch-your-app).

***

## Distribution

| Destination         | Share | Amount    | Purpose                                  |
| ------------------- | ----- | --------- | ---------------------------------------- |
| Bonding curve       | 50%   | 5,000,000 | Liquidity for price discovery            |
| Team vesting wallet | 25%   | 2,500,000 | Team incentives, vests linearly          |
| Ecosystem vault     | 25%   | 2,500,000 | Community incentives, controlled by Safe |

***

## Design Purposes

App tokens serve three main functions:

1. **Bootstrap distribution:** the bonding curve makes tokens available to early supporters at a price that rises with demand
2. **App incentives:** builders use tokens for tournaments, items, staking, and community rewards
3. **Fee routing:** trading fees and transfer taxes flow through FeeRouter to the treasury and contributor split

***

## Transfer Tax

App tokens support an optional transfer tax of up to 2% (protocol-wide cap). The tax applies only when:

* Neither the sender nor the receiver is tax-exempt
* The transfer touches an allowlisted liquidity pool (LP-keyed)

Transfers between regular wallets that do not involve an LP are not taxed.

<Warning>
  Transfer tax is not retroactive. It applies from the moment it is configured. Builders configure it through their Safe.
</Warning>

***

## Token Lifecycle

1. **Phase B deployment:** 10M tokens minted, distributed 50/25/25
2. **Bonding curve active:** tokens tradeable on the curve
3. **Graduation:** remaining curve tokens and ELTA pair on a DEX, LP locked for 730 days
4. **Post-graduation:** tokens trade freely on the DEX with fee routing active
5. **Burns:** item purchases burn tokens, reducing supply over time

***

## Next

<CardGroup cols={3}>
  <Card title="Bonding Curve Basics" icon="chart-line" iconType="light" href="/apps/design/bonding-curve-basics">
    Price discovery mechanics
  </Card>

  <Card title="Fee Flow for Apps" icon="route" iconType="light" href="/apps/design/fee-flow">
    How fees are routed
  </Card>

  <Card title="Items and Unlocks" icon="gem" iconType="light" href="/apps/operate/items-and-unlocks">
    Token burn through items
  </Card>
</CardGroup>