# Economic Distribution on TOP AI

The TOP token was issued by the Telos Foundation when the TOP mainnet was launched and has been running smoothly for over three years. The Telos Foundation represents the interests of the TOP AI Network and, with the support of the AI Lab, has jointly driven TOP's development towards AI by adding an AI shard to support real, high-frequency application services.

After the addition of the new shard, the annual Token mining mechanism at the top level of the beacon chain remains unchanged:

{% hint style="info" %}
Total reward in the Nth year = Max (remaining reserved reward at the beginning of the Nth year\*8%, 2%\*20 billion)
{% endhint %}

The distribution of the mining reward pool remains largely unchanged with 20% allocated as staking rewards, 76% as miner workload rewards, and 4% as on-chain governance committee rewards.

The original shards continue to handle the underlying transfer and transaction consensus functions. The AI shard receives a proportion of the mining reward pool, with a share of 76% \* R, while the original shards receive 76% \* (1 - R).

To support the business expansion of the new shard, Telos Foundation will provide additional funding to the AI shard, gradually decreasing from the first year until the end of the third year. Computing nodes in AI shard will receive significantly higher rewards compared to nodes in the original shards.

> Assuming R = 80%

| Year of AI Shard Launch | Estimated Annual Total Mining for TOP | Estimated Mining for AI Shard | Foundation Subsidy |
| ----------------------- | ------------------------------------- | ----------------------------- | ------------------ |
| 1                       | 473,440,000                           | 287,851,520                   | To be determined   |
| 2                       | 435,560,000                           | 264,820,480                   | To be determined   |
| 3                       | 400,720,000                           | 243,637,760                   | To be determined   |


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