> For the complete documentation index, see [llms.txt](https://docs.apyx.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.apyx.fi/product-overview/apyx.md).
# APYX
APYX is the governance token of the Apyx protocol.
APYX is not a speculative emissions token. It is designed to receive real cash flow from protocol reserve growth beginning on day one.
### Overview
APYX represents:
* Governance power over the Apyx protocol
* Economic rights to a portion of reserve growth
* Control over payout ratios and reserve allocation
* Exposure to structural income derived from preferred equity
APYX holders stake their tokens to receive a share of protocol reserve growth. Governance decisions directly impact how value flows through the system.
### Tokenomics
* Total Supply: 100,000,000 APYX
* No inflation, fixed supply
* No emissions schedule
* No future minting
All locked or vesting tokens follow a structured unlock schedule. Core team allocations vest over four years. The full unlock schedule is published prior to Token Generation Event (TGE).
#### Allocation & Float
APYX was funded by early contributors, strategic partners, and angel investors. There are:
* No venture capital allocations
* No discounted Series A overhang
* No short-term unlock cliffs designed for liquidity exits
This structure was intentional. APYX was designed to launch and exist without venture overhang.
#### Tight Float at Launch
Only a small percentage of supply is freely tradable at launch. Most tokens are subject to multi-year vesting schedules. Implications:
* Reduced structural sell pressure
* Lower circulating supply relative to fully diluted supply
* Long-term alignment between builders and token holders
Additionally, the Apyx Foundation does not earn staking rewards on its allocation. This ensures 100% of rewards go to community members, the core team, and early supporters.
### Value Accrual Model
APYX accrues value through reserve growth. The reserve represents everything the protocol owns. Growth comes from operational income, not token sales.
At launch:
* 50% of monthly reserve growth is paid to APYX stakers
* 50% remains in the reserve to compound and strengthen overcollateralization
Stakers may choose to receive rewards in:
* apxUSD (dollar-denominated)
* Additional APYX
Rewards must be actively claimed. The 50% payout ratio is a starting parameter and can be modified through governance. As the reserve and overcollateralization buffer grow, governance may increase the payout ratio.
### Sources of Reserve Growth
Reserve growth comes from three primary sources.
#### 1. Collateral–apyUSD Yield Spread
The protocol holds:
* DAT preferred equity
* U.S. Treasuries
Examples of preferred holdings include variable-rate perpetual preferreds issued by DATs. The yield generated from these instruments funds:
1. apyUSD yield payments
2. Excess yield allocated to the protocol reserve
The spread between collateral yield and apyUSD payouts is structurally positive. Preferred dividends are contractual obligations of the issuing DATs. They do not rely on funding rates, basis trades, or market speculation.
This is the protocol’s most predictable source of income.
#### 2. Preferred Equity IPO Participation
When a DAT issues new preferred stock, it typically prices below par.
Example:
* $100 par instrument
* IPO price around $80
Apyx may participate in these offerings and acquire preferred shares at discounted issuance prices. When the instrument trades toward par value, the protocol captures that appreciation. This generates capital gains that accrue to the reserve.
#### 3. Additional Income Channels
Smaller but meaningful contributors include:
* Issuance fees on apxUSD
* Redemption fees
* Lending preferred positions through brokerage accounts
* Other capital markets activities
Individually modest, collectively meaningful at scale.
### Governance
APYX governance controls:
* Reserve allocation across preferred instruments
* Payout ratio to stakers
* Risk parameters
* Protocol-level economic adjustments
Governance power is tied directly to economic outcomes.
Decisions impact:
* Overcollateralization levels
* Reserve growth rate
* Staker cash flow
Governance is not ceremonial. It governs real capital.
### **Overcollateralization Buffer Deployment**
In intermediate-risk scenarios, APYX governance may vote to deploy a portion of the overcollateralization buffer to support Redemption Value. The buffer is otherwise preserved as the final backstop for holders.
### The APYX DAT Thesis
The team behind Apyx also built DeFi Development Corp. (Nasdaq: DFDV), the first non-bitcoin Digital Asset Treasury. APYX is a strong candidate to support its own Digital Asset Treasury structure in the future.
A publicly traded vehicle accumulating APYX could create:
* Structural bid pressure
* Long-term token absorption
* Increased governance concentration
This remains a potential long-term strategic pathway.
### Staking
To receive reserve growth distributions:
1. Stake APYX
2. Select payout preference (apxUSD or APYX)
3. Claim rewards periodically
Rewards are not automatically rebased. They must be claimed.
### Why APYX Is Different
* Fixed supply
* No VC overhang
* Real cash flow from day one
* Structural preferred equity income
* Governance over capital allocation
* Compounding reserve model
* A play on DAT accumulation and stablecoin innovation
\
Furthermore, with half of reserve growth compounding and half flowing to stakers, a unique dual-engine is created:
1. Immediate yield
2. Long-term asset base growth
### Risk Considerations
APYX value depends on:
* Reserve growth
* Preferred dividend stability
* Governance decisions
* Market liquidity
* Regulatory developments
Participation may be restricted in certain jurisdictions. Users located in restricted jurisdictions may be prevented from accessing the Apyx frontend.
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.
Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:
```
GET https://docs.apyx.fi/product-overview/apyx.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
