HALO Logo
HALO
← Back

Tokenomics

HALO token is the utility and governance token of the protocol, separate from vHALO vault shares.

HALO Token Overview

HALO is a utility and governance token that powers the HALO AI ecosystem. It is distinct from vHALO (vault share tokens) which represent ownership in the liquidity pool.

Token Utilities

1. Staking

Stake $HALO tokens to earn additional rewards from 50% of performance fees.

By staking $HALO, you earn a share of the performance fees generated by the vault, providing additional yield on top of vault returns.

2. Governance

Voting rights on protocol parameters including:

  • Fee adjustments (performance fee percentage)
  • Market expansions (adding new prediction markets)
  • Protocol upgrades and improvements
  • Treasury allocation decisions

Decentralized Governance

Token holders have direct influence over protocol evolution through on-chain voting.

3. Buyback & Burn

25% of performance fees are used to buy back and burn $HALO tokens, creating deflationary pressure and increasing token value over time.

burned_tokens = (performance_fees * 0.25) / token_price

Revenue Model

Performance Fee Structure

The protocol generates revenue through a 20% performance fee on gross profits from spread capture.

Fee Allocation

The 20% performance fee is distributed as follows:

Total Performance Fee = Gross Profits * 20%

  1. 50% to Staking Rewards: Distributed proportionally to $HALO stakers

    • Rewards = (Performance Fee * 0.50) / Total Staked $HALO

  2. 25% to Buyback & Burn: Used to purchase $HALO from the market and burn

    • Buyback Amount = Performance Fee * 0.25

  3. 25% to Protocol Treasury: Allocated for:

    • Development and engineering
    • Marketing and growth
    • Protocol reserves and emergency funds

Token Launch

HALO Tokenomics Launch on Seedify Launchpad

TGE on Seedify: January 29, 2026

Launch Details

The HALO token will launch on Seedify Launchpad. Specific details including token price, allocation, and vesting schedules will be announced closer to the launch date.

vHALO vs HALO

It's important to understand the difference:

vHALO (Vault Shares)

  • Represents ownership in the vault liquidity pool
  • Value increases as vault generates profits
  • Can be redeemed for USDT (principal + profits)
  • Not a tradeable token, but a receipt for vault participation

HALO (Governance Token)

  • Utility and governance token
  • Tradeable on exchanges
  • Used for staking to earn performance fee rewards
  • Provides voting rights in protocol governance
  • Subject to buyback and burn mechanism

Economic Model

The dual-token model creates aligned incentives:

  1. vHALO holders benefit from vault performance (80% of profits compound)
  2. HALO stakers benefit from protocol success (50% of fees as rewards)
  3. HALO holders benefit from deflationary pressure (25% buyback & burn)
  4. Protocol benefits from sustainable treasury (25% for growth)

This model ensures all participants are incentivized to support protocol growth and success.

Next Steps