# AILayer Tokenomics

> AILayer is the first Bitcoin Layer 2 network built to support the mass adoption of AI applications through seamless integration of Web3 infrastructure and Bitcoin security. The native token, $AIL, serves as the backbone of the AILayer ecosystem — empowering governance, securing the network, and incentivizing both technical and community participants.
>
> With a total supply of 1,000,000,000 AIL, AILayer’s token economy is designed to foster long-term alignment between ecosystem contributors and the network’s growth. The design incorporates gradual unlocking mechanisms, a clear allocation strategy, and utility to support sustainable development.

### Token Utility

The $AIL token powers several core functionalities across the AILayer ecosystem:

* Validator Staking: Validators stake AIL tokens to secure the network and earn rewards.\ <br>
* Governance: Token holders can vote on proposals, upgrades, and network decisions.\ <br>
* Gas Fee Sharing: Stakers can share network transaction fee revenues.\ <br>
* AI Incentives: Rewards for contributing to AI model development and deployment.\ <br>
* AI Prover Staking: Users must stake AIL to become eligible AI Provers within the network.\ <br>
* LaunchPad Participation: Token holders can stake AIL to access new project allocations.\ <br>
* AI Ecosystem Utility: AIL tokens are used for discounts and payments within the AI-powered dApp ecosystem.

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfbfD83eoBasAAF8yTK0DEzZ8ken4u59Rmyzeu1_9Ie5rqc_8UliOepLUks1xb7TmB4bs6aV6Se6iKo9tEHXqIobtU7AGpReIrEnUumuuQH3CrseBOTP1LZfhGrQo--qR0HYRXoXw?key=QD4WWFBRIcwW_qyGSy0tnWUy" alt=""><figcaption></figcaption></figure>

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