# 4.2 Issuance Phases & Distribution Mechanism

**1. Initial Phase : Protocol Launch and Base Minting**

●      Launch marketing and community engagement

●      Encourage $NSG minting and participation<br>

**2. Growth Phase : Ecosystem expansion and user incentives**

●      Begin broader ecosystem development and roll out NSGP utility

●      5% Marketing Fund Potential Uses:

○      Airdrops: Rewards Ecosystem Partners Users, Communities Marketing Support

○      Liquidity Mining: Incentivize $NSG staking and liquidity provision

○      Partnerships: Brand’s Web3 Activation, Crypto Events & Exhibitions, Crypto Projects Partnership, KOLs\ <br>

●      2.5% Ecosystem Development Fund Potential Uses:

○      Project Development: Incubate new Projects through NS Governance Protocol

○      DAO Infrastructure: Governance tools and revenue distribution systems

○      Strategic Partner Incentives: Subsidize early integration costs for NSGP\ <br>

**3. Mature Phase : Full decentralization of governance**

●      Unlocks and distribution of vested tokens over 2 years after 12 months cliff

○      Founding Team & Advisors (5%)

○      Seed / Strategic Investors (5%)