# Governance Incentives

20,000,000 SWAP tokens are set aside annually as fixed governance incentives to encourage governance participation. These incentives are also distributed monthly.

* Monthly Governance Incentives: Approximately 1,666,667 SWAP
  * Calculation: 20,000,000 SWAP / 12 months ≈ 1,666,667 SWAP per month.

The incentives are distributed on a pro-rata basis according to each holder's allocated voting power during the epoch.

### Example of Governance Incentives Distribution

* Total Governance Incentives for Epoch: Approximately 1,666,667 SWAP.
* Participants:
  * Alice's Allocated Voting Power: 4,500
  * Bob's Allocated Voting Power: 3,000
* Total Allocated Voting Power: 7,500

#### Distribution:

* Alice:
  * Holds 4,500 / 7,500 = 60% of the total allocated voting power.
  * Alice's Incentive Share: 1,666,667 SWAP \* 60% ≈ 1,000,000 SWAP 
* Bob:
  * Holds 3,000 / 7,500 = 40% of the total allocated voting power.
  * Bob's Incentive Share: 1,666,667 SWAP \* 40% ≈ 666,667 SWAP 

This example demonstrates how allocated voting power directly influences the share of governance incentives received by each participant.


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