# LQTY Rewards and Distribution ### What is LQTY? LQTY is the secondary token issued by the Liquity protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters and Frontend Operators. LQTY rewards will only accrue to Stability Providers — i.e. users who deposit LUSD to the Stability Pool, frontends who facilitate those deposits, and liquidity providers of the LUSD:ETH Uniswap pool. *As technical rewards, they are based on a preprogrammed functionality of the protocol and not on a claim towards Liquity AG or any third party.* ### What is LQTY's max supply? LQTY has a max supply of 100,000,000 tokens. ### Is LQTY a governance token? No. LQTY is not a governance token, as there is no Liquity governance. ### How can I earn LQTY? LQTY is earned in three ways: * Depositing LUSD into the [Stability Pool](https://docs.liquity.org/liquity-v1/stability-pool-and-liquidations#what-is-the-stability-pool). * Facilitating Stability Pool deposits through your [frontend](https://docs.liquity.org/liquity-v1/faq/frontend-operators). * Providing liquidity to the LUSD:ETH Uniswap pool. ### What can I do with LQTY? LQTY holders can stake their tokens to earn the fees generated by loan issuance and LUSD [redemptions](https://docs.liquity.org/liquity-v1/lusd-redemptions#what-are-redemptions). Learn more about [staking](https://docs.liquity.org/liquity-v1/faq/staking). ### What is LQTY's distribution schedule? LQTY's community issuance (outside of LP incentives and the Community Reserve) follows a yearly halving schedule, described by the following function: `32,000,000 * (1–0.5^year)`. The purpose of this issuance curve is to favorably incentivize early adopters while also maintaining incentives for the long term. ### What are LQTY's genesis allocations? Information on LQTY's genesis allocations can be found [here](https://medium.com/liquity/liquity-launch-details-4537c5ffa9ea). ### Was there an LQTY airdrop? No. LQTY could only be earned by the methods mentioned above. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.liquity.org/liquity-v1/faq/lqty-distribution-and-rewards.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.