# HONEY

The [HONEY token](https://solscan.io/token/HonyeYAaTPgKUgQpayL914P6VAqbQZPrbkGMETZvW4iN) is the lifeblood of the Honey Finance protocol. It is used to incentivise lending, borrowing, liquidity provision, and contributions to the DAO.

## Distribution

The HONEY token had a fair launch on March 31st 2022 with no presale or allocation to early investors. The fair launch raised 755k and sold 85 million tokens.

77.5% of the total supply is allocated to the community.

* **54% goes to the DAO’s treasury** to be split between the insurance fund, the Honey Foundation, grants, and more.
* **15% goes to liquidity incentives** either through liquidity mining, bond purchases, or NFT staking.
  * Half of all liquidity mining incentives are allocated to Honey Genesis NFTs
* **8.5% is allocated to the IDO**

22.5% is allocated to Honey Labs.

* **22.5% is allocated to Honey Labs inc.** based on a 2 year vesting schedule, following the same schedule as [Rari Capital](https://medium.com/rari-capital/an-updated-take-on-vesting-8b3aa8c3a902)

## How to obtain HONEY

Honey can be earned by participating in liquidity mining. Half of all $HONEY liquidity mining goes to Honey Genesis NFT holders.

The remaining half of liquidity mining tokens are used to incentivise (through rewards) lending, borrowing, and liquidity providing.

## How to hold HONEY

Simply holding HONEY tokens in a wallet comes with high opportunity cost relative to veHONEY rewards. Longer term HONEY holders should vest tokens to veHONEY in order to participate in the DAO. The minimum [vesting period](https://docs.honey.finance/tokenomics/vehoney) is 1 week and the maximum is 4 years.

Short term holders and speculators can provide liquidity to HONEY/USDC on [Aldrin](https://dex.aldrin.com/pools/Hon...4iN_USDC) or [Orca](https://www.orca.so/liquidity/browse?tokenMint=HonyeYAaTPgKUgQpayL914P6VAqbQZPrbkGMETZvW4iN)