# Tokenomics > The final POLAR allocation, vesting schedule and launch parameters will be published closer to launch once finalized. Canonical URL: https://docs.polaris.finance/architecture/tokenomics Markdown URL: https://docs.polaris.finance/architecture/tokenomics.md Section: Core Architecture Documentation index: https://docs.polaris.finance/llms.txt Full documentation bundle: https://docs.polaris.finance/llms-full.txt --- The final POLAR allocation, vesting schedule and launch parameters will be published closer to launch once finalized. This section focuses on the economic principles behind POLAR. ## Supply POLAR will launch with an initial supply of 100 million tokens, distributed across the treasury, community, team and investors. Those tokens will gradually enter circulation according to their respective vesting schedules, while the long-term growth of the supply is entirely driven by organic demand, served by the conversion mechanism. Every new POLAR outside the vesting schedule requires pETH to be permanently converted before it can enter circulation (see Conversions). As the protocol grows, pETH grows alongside it by capturing protocol-native value. Since every additional POLAR entering circulation beyond the initial allocation is created from pETH, the POLAR supply can only expand alongside the value of the underlying Polaris ecosystem, keeping the utility token economically connected to the ecosystem it serves. ## A Closed Economy Polaris is designed as a closed economic system where the value generated by protocol activity remains inside the ecosystem. Instead of relying on continuous token emissions to attract liquidity, value generated through the core protocol mechanisms is redistributed across the ecosystem according to the role of each asset. Treasury-held POLAR participates through vePOLAR alongside every other long-term holder, aligning incentives across the ecosystem. ## vePOLAR Long-term participation in Polaris takes place through vePOLAR. Users commit POLAR for a chosen period of time to align themselves with the long-term growth of the ecosystem. In return, they receive a share of protocol-native value, including interest from deployed pAssets, together with stewardship rights. These returns are distributed through protocol activity itself, without relying on additional POLAR incentives.