> For the complete documentation index, see [llms.txt](https://docs.noon.capital/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.noon.capital/4.-usdnoon/overview.md). # Overview True Protocol Ownership: Sustainable Value Accrual, User-First Allocation, and Institutional Governance. **$NOON** is the native governance token of the **Noon** Protocol. Staking **$NOON** is the native governance token of the **Noon** Protocol. Staking **$NOON** into **$sNOON** grants users dual utility: * A direct economic claim on protocol earnings and * Meaningful voting power over protocol parameters and reserve deployments Unlike conventional stablecoin and Web3 protocols that divert token equity to venture capital funds, early insiders, or key opinion leaders (KOLs), **$NOON** is engineered around one core design principle: maximizing long-term value for the protocol’s actual users. ## Core Architecture Overview The **$NOON** section is structured into three dedicated modules:

#### [1. Token Distribution & Supply Allocation ↗](https://www.google.com/search?q=%2523\&utm_source=gemini) **Noon** eliminates insider dilution. 65% of **$NOON** is allocated to the Community Fund and distributed over an extended 8+ year horizon, while 15% sits in the Ecosystem Fund to drive growth, and 20% vests to the core team over a market-leading 7-year schedule. There are zero venture capital or discounted early LP allocations. #### [2. Token Utility & Real Revenue Accrual ↗](https://www.google.com/search?q=%2523\&utm_source=gemini) **$NOON** captures real protocol value. 10% of monthly protocol returns feed the Insurance Fund, and 10% fund protocol operations. Excess operational reserves and seasoned insurance funds are programmatically used to buy back **$NOON** on the open market, distributing the acquired tokens directly to **$NOON** stakers. #### [3. The Staking Framework: Active vs. Open Staking ↗](https://www.google.com/search?q=%2523\&utm_source=gemini) **Noon** introduces a dual-path staking architecture: Active Stake (for users who earned **$NOON** by holding **$USN** or **$sUSN**) and Open Stake (for users who bought **$NOON** on the open market). Both pools share an accelerating exponential vesting curve and a 48-month voting-power multiplier curve, routing unvested or forfeited tokens back to long-term community stakers. ## The Core Design Principle Every structural mechanism within the **$NOON** tokenomics model was built around a single question: > #### "At every decision point, how do we make the end result as favorable to our users as possible?" This philosophy dictates our supply distribution, our programmatic buyback mechanics, and our long-term staking schedules: * **No Insider Discounts:** Noon is self-funded. By refusing venture capital and preferential LP deals, Noon reserves 65% to 80% of total token allocation for users—compared to the 10%–30% industry average. * **Boosted ****$sUSN**** Yield Mechanics:** Disproportionate **$NOON** allocations are routed to **$USN** (non-yielding) holders. Because **$USN** holders forgo raw protocol yield in favor of **$NOON** rewards, that yield concentrates into **$sUSN**—sustaining higher, boosted APYs for stakers over an 8+ year distribution window. ## High-Level Token Allocation

**$NOON** is **Noon**'s governance token. \ \ Holding it gives you two things: a claim on what the protocol earns, and a say in how it is earned. The protocol's returns fund regular buybacks. The **$NOON** bought back goes to stakers. So as protocol revenue grows, more of it flows to people holding **$sNOON**. Staking is also what gives users voting power. Stakers vote on which strategies capital gets deployed into, approve counterparties, and adjust incentives. Stake for longer and your vote counts for more. There were no VC or KOL allocations. **$NOON** went to the people who built **Noon** and the people who use it. **$NOON** also unlocks boosts and multipliers across **Noon League** and partner campaigns to come. ## Design Principle We had one simple design principle when designing the **Noon** protocol, and in particular, the **$NOON** mechanics. #### At every decision point, we asked ourselves, "*How can we make the end result as favourable to our users as possible?*" This has led us to the current design of the **Noon** protocol. ## Tokenomics **Noon** has desgined our tokenomics to: 1. Maximise **$NOON** **token allocation** to users: 65-80% to users 1. Among users, **prioritise distributions to long term users and holders**, as opposed to short-term sellers 2. Ensure all token distribution is done **transparently**, and over as **long of a term** as possible 3. **Maximise** the **value** of holding **$NOON** 1. Allow holders ultimate control over the protocol 2. Distribute real value, real returns, to users ## Token allocation We aim to allocate as many **$NOON** tokens to users as possible. The **$NOON** governance token allocation is very simple (figure 1). * **65% is allocated to the Noon Community Fund.** This is the fund which distributes tokens to Noon’s users, based on their holdings and activity within the protocol. * **15% is allocated to the Noon Ecosystem Fund.** This is the fund which is used by the Noon Foundation to accelerate the growth of the protocol. We will aim to also distribute this to Noon's users. * **20% is allocated to Noon's team.** This will be distributed to the **Noon** team, with a 7 year vesting period.

Allocation	Share	Notes
Noon Community Fund	65%	Distributes to users based on holdings and activity, over 8+ years
Noon Ecosystem Fund	15%	Used by the Noon Foundation to accelerate growth; the aim is to distribute this to users as well
Team	20%	Vests over 7 years (1-year cliff + 6 years linear monthly); see Vesting

There is an absence of **investors** and **early LPs** (with preferred terms) on the token allocation table to date. These are two groups which typically receive a significant token allocation from most (stablecoin) projects. **Noon has 0 ****$NOON**** tokens allocated to both.** * **Noon** is **self-funded**, and has no plans to take on external investment at this time * **Noon** has grown its TVL **organically**, and has not relied on preferential deals with early LPs Both of these mean that we can maximise **$NOON** token distribution to you, our users. While most comparable projects allocate between 10-30% of governance tokens to users, **Noon will distribute between 65-80% of governance tokens to our users** (figure 2)**.**