> For the complete documentation index, see [llms.txt](https://aionet.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://aionet.gitbook.io/docs/dao-governance/on-chain-distributions.md).

# On-Chain Distributions

On-Chain Distribution & Mint Economics

### Introduction

AIONET uses a structured, transparent distribution model to allocate value generated within the ecosystem.

Distributions are not based on speculation or passive entitlement. They are directly tied to real system activity, primarily through membership participation and ecosystem usage.

All allocation logic is predefined and executed according to fixed rules, ensuring consistency, transparency, and alignment across the platform.

***

### Distribution Sources

Distributions within AIONET are generated from specific, verifiable actions.

The primary sources include:

* membership NFT minting
* participation in internal mechanisms (such as RaffleQuiz)

There are no distributions generated from:

* inactive users
* external speculation
* or non-participatory activity

This ensures that all value flows originate from real engagement within the ecosystem.

***

### Membership Mint Distribution

When a new membership NFT is minted, the value is allocated across different system layers.

| Allocation | Destination              | Purpose                                                  |
| ---------- | ------------------------ | -------------------------------------------------------- |
| Up to 65%  | Affiliate Network        | Supports ecosystem growth through Builder participation  |
| 5%         | ROYAL Members            | Distributed equally among active ROYAL participants      |
| 5%         | Marketing Growth         | Supports platform expansion and awareness                |
| 10%        | DAO Treasury             | Funds development and ecosystem initiatives              |
| 10%        | Operations & Marketing   | Supports platform operations & monthly fee subscriptions |
| 5%         | Profile Level 10 Rewards | Sustains internal mechanisms and future incentives       |

This structure ensures that growth, participation, and sustainability are all supported simultaneously.

***

### ROYAL Distribution Layer

ROYAL members participate in a system-level distribution tied to ecosystem expansion.

| Mechanism    | Description                           |
| ------------ | ------------------------------------- |
| Source       | Portion of each new membership mint   |
| Allocation   | 5% of mint value                      |
| Distribution | Equal across all active ROYAL members |

This mechanism is designed to reflect long-term alignment and active participation within the highest membership tier.

***

### Affiliate Distribution Logic

The affiliate system distributes value based on real participation within the network.

| Level        | Source of Distribution | Condition                      |
| ------------ | ---------------------- | ------------------------------ |
| Level 1–8    | Membership mints       | Requires active Builder status |
| Level 1 only | BTC Vault activity     | Based on direct participation  |

Key principles:

* rewards are generated only from real activity
* no distribution from free or inactive users
* participation must be verifiable and on-chain

This ensures that network growth remains directly connected to system usage.

***

### Treasury Allocation

The DAO Treasury receives a fixed portion of system-generated value.

| Source            | Allocation                  |
| ----------------- | --------------------------- |
| Membership mints  | 10%                         |
| BTC Vaults Claims | 5-10-20% based on NFT Tiers |

The treasury is used to support:

* product development
* ecosystem expansion
* community initiatives

All treasury usage is governed through DAO processes, ensuring transparency and collective decision-making.

***

### System Characteristics

The AIONET distribution model is designed with specific constraints:

* deterministic and rule-based
* tied exclusively to real participation
* non-custodial in relation to user funds
* separated from financial entitlement structures

There are no:

* guaranteed returns
* passive income mechanisms
* or speculative reward layers

Distributions exist purely as part of system coordination and participation.

***

### Final Perspective

On-chain distributions in AIONET are not designed as financial outputs.

They are structural flows within the ecosystem.

Each allocation serves a specific role:

* supporting growth
* reinforcing participation
* sustaining development
* and aligning long-term contributors

By anchoring all distributions to real activity and predefined logic, AIONET ensures that value remains connected to participation, and that the system evolves in a transparent and sustainable way.

***