> For the complete documentation index, see [llms.txt](https://docs.liquidroyalty.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.liquidroyalty.com/token/token-overview.md).

# Token Overview

> **Note:** Allocations below (including any optional pre-sale) are an **illustration** of how a Royalty Token launch *can* be structured. They are **not** a fixed launch framework. Actual floats, locks, and whether a pre-sale is used at all are set per listing / RTGE.

There are 3 types of Royalty Token status commonly used at offering (illustrative):

1. **Unlocked Royalty Token** - circulating tokens that can trade freely (e.g. after unlocks; an optional pre-sale may use its own vesting schedule)
2. **Locked LP Tokens** - enable more Royalty Token circulation through swapping against Stablecoins
3. **Locked Royalty Token** - Tokens that are vested based on time and shop performance

LP tokens based on Royalty Token allow additional yield types to be collected by liquidity providers, including:

* Royalty Token principal growth and royalty distributions (settled weekly, streamed daily)
* Liquidity pool trading fees
* Partnership incentives, including:
  * Stablecoin partnership incentives
  * Brokerage partnership incentives
  * Chain partner incentives

<figure><picture><source srcset="/files/N15o6kvbFMIdeCOE98bV" media="(prefers-color-scheme: dark)"><img src="/files/N15o6kvbFMIdeCOE98bV" alt=""></picture><figcaption><p>Types of yield from Royalty Token liquidity pools</p></figcaption></figure>

The variety of yields allows LP token yield to be more diversified and less susceptible to impermanent loss (market making inventory loss). Referencing traditional structured products, yield can be further allocated across **Senior / Junior / Protocol Reserve vaults** to suit different risk appetites.