# Yield Farming Index Token ($YFX) > The Yield Farming Index Token ($YFX) is the native token of the YFX Protocol, facilitating stake vault engagement and protocol governance via holder voting. - Canonical URL: https://iq.wiki/wiki/yield-farming-index-token-dollaryfx - Categories: Cryptoassets - Tags: Infrastructure - Created: 2024-01-29T04:18:59.741Z - Last updated: 2024-03-01T22:18:50.290Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **$YFX** serves as the native token for the [Yield Farming Index Protocol](https://iq.wiki/wiki/yield-farming-index-yfx-protocol). It is structured to enable engagement in single-stake vaults for the $YFX token, with the goal of directing a portion of the protocol's revenue to [stakers](https://iq.wiki/wiki/staking). $YFX Token holders can vote for or against proposals by the [YFX Protocol](https://iq.wiki/wiki/yield-farming-index-yfx-protocol) on Snapshot. [\[1\]](#cite-id-un01n8y1t2g)[\[2\]](#cite-id-f8ca5efwxzl)[\[3\]](#cite-id-vm6uucokpaj)[\[4\]](#cite-id-jd7yg7h8hym)[\[5\]](#cite-id-tromlhqjcrp) # Token Distribution The presale for YFX had three distinct phases: a private sale, [GMD](https://iq.wiki/wiki/gmd-protocol) launchpad sale, and public sale, with priority start on February 27th, 2023, at 5pm CST. During the private sale, tokens were offered at a rate of $1/YFX with a hard cap of 1,000,000 tokens at $750,000. If the private sale failed to reach $500,000, the hard cap for all sales would be set at $1,000,000. If sales fell between $500,000 and $1,000,000, the combined hard cap would increase to $1,500,000. Кeaching the hard cap, the total cap for all sales would be $2,000,000. The public sale commenced on February 28th, 2023, at 5pm CST, concluding on March 1st, 2023, at 5pm CST, with sales reaching $2,000,000. The total [market cap](https://iq.wiki/wiki/market-capitalization) and supply of YFX were determined based on the dollar amount raised during the presale, ensuring a deflationary trajectory for the token going forward.[\[1\]](#cite-id-un01n8y1t2g)[\[6\]](#cite-id-eqywowp3fxm)[\[7\]](#cite-id-dbmsmeh2iw) # ![FqBaneoakAEvLFw.jpeg](https://ipfs.everipedia.org/ipfs/QmWWVB3T5tvuUuprxzQaAtkSuuXYFGLTs3egGrBQY25niJ)Allocation The YFX token supply distribution is structured as follows: * **Presale:** 75% * **Liquidity**: 15% (matched with 20% of presale funds) * **Team**: 10% (subject to linear vesting over 180 days) Additionally, the team is entitled to a 40% share of the profits generated by trades on a monthly basis.[\[6\]](#cite-id-eqywowp3fxm)[\[8\]](#cite-id-ez6a4io6ucj) # Tax and Deflationary Model The tax and deflationary model employed by the [Yield Farming Index Protocol](https://iq.wiki/wiki/yield-farming-index-yfx-protocol) features a 1% transaction tax applied to both buys and sells. Half of the collected taxes are allocated to the team, while the remaining 50% undergoes a systematic [burn process](https://iq.wiki/wiki/token-burn). In addition, the protocol incorporates a redemption mechanism, initiating a 48-hour [burn](https://iq.wiki/wiki/token-burn) period on the 1st of each month. During this period, holders have the opportunity to burn YFX tokens, thereby earning their proportionate share of the Redeemable Fund Value (RFV). [\[9\]](#cite-id-m1i5wdtvxvh)