> For the complete documentation index, see [llms.txt](https://docs.hliquity.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.hliquity.org/deep-dive/hlqt-rewards-and-distribution.md).

# HLQT Rewards and Distribution

### Introduction to HLQT Rewards

HLQT is the native token of the HLiquity protocol, pivotal in incentivizing user participation and maintaining the protocol's health. HLQT rewards are distributed to users who actively contribute to the protocol's stability and growth.

### Earning HLQT Rewards

There are several ways users can earn HLQT rewards:

1. **Stability Providers:** Users who deposit HCHF into the Stability Pool are rewarded with HLQT tokens. The amount of HLQT earned is proportional to the user's share of the total HCHF in the Stability Pool.
2. **Frontend Operators:** Frontend Operators earn a portion of the HLQT rewards generated by their users. The exact percentage is determined by the Kickback Rate set by the Frontend Operator.
3. **Staking HLQT:** Users can stake their HLQT tokens to earn a share of the protocol's fee revenue.

### HLQT Distribution

The distribution of HLQT tokens is designed to ensure a fair and decentralized allocation. The total supply of HLQT tokens is 100,000,000, minted at Genesis. The distribution is as follows:

* Community: 40%
* Community Reserve: 5%
* Team & Collaborators: 19.2%
* Investors: 30%
* Advisors: 2%
* Service Providers: 3.8%

Detailed HLQT token distribution information can be found here: [HLQT Tokenomics](https://docs.hliquity.org/fundamentals/hlqt-tokenomics), aligning with the strategic roll-out plan for the HLiquity protocol launch.

### Conclusion

HLQT rewards and distribution are integral to the HLiquity protocol, incentivizing user participation and ensuring long-term sustainability. By understanding the basics of HLQT rewards and distribution, users can make informed decisions about their involvement in the HLiquity ecosystem.


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