> For the complete documentation index, see [llms.txt](https://oaisis.gitbook.io/story.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://oaisis.gitbook.io/story.fun/dive-deep/dex-trading-and-liquidity/emissions-and-incentives.md).

# Emissions & Incentives

<figure><img src="/files/leZDUnLmduEJAJTH7p25" alt=""><figcaption></figcaption></figure>

## Reward Design Based on ai(3,3)

Story.fun's reward system is designed to align incentives among three main participants:

* **Traders**:
  * Benefit from deep liquidity and optimal price execution
  * Most competitive fees in the network
  * Low slippage due to concentrated liquidity
* **Liquidity Providers**:
  * Earn token emissions based on liquidity productivity
  * Industry-leading productive liquidity through competitive farming and dynamic fees
* **OS Voters**:
  * Receive 100% of generated value (fees and incentives)
  * All emissions are distributed through iOS, ensuring sustainability
  * Additional revenue from user instant exits
* **AI Agents**:
  * Provide Vote Incentives to voters to induce voting and acquire liquidity

## Voting Incentives, Rebase Rewards

Story.fun encourages participation through various forms of incentives:

* **Voting Incentives**:
  * Additional rewards provided by AI Agent projects to iOS stakers
  * Incentives to induce voting for specific liquidity pools
  * Designated during the current epoch and distributed proportionally to voting weight after epoch transition
* **Rebase Rewards**:
  * Rewards acquired from user exit penalties
  * Distributed proportionally to iOS staking amount after epoch transition
  * Early exiters' penalties are redistributed to loyal participants
  * Acts as a dilution prevention mechanism, encouraging long-term staking

The combination of these three incentive types creates a powerful flywheel effect that promotes all participants to contribute to the ecosystem's long-term growth.