SURF.Finance is a financial experiment that aims to discover what happens when a transparent (and tubular) team fairly launches a governance token that is designed to reward long-term holders (aka hodlers).

The project has two distinct phases:

**Phase 1:** Fair Distribution - The entire 10 million token supply will be fairly distributed during this farming phase to everyone that has staked Uniswap LP (liquidity provider) tokens in one of SURF’s beaches (our word for a farm pool). By using a fixed APY calculation, each beach will mint less SURF per block as the price of SURF increases, and more SURF per block as the price decreases. The goal of this phase is to provide a strong foundation for Phase 2 by getting the majority of the SURF supply into the hands of hodlers. During this phase, the Whirlpool won’t be active, but it will be accruing a mountain of SURF that will eventually get rewarded to those that provide SURF-ETH liquidity on Uniswap and stake their LP tokens in the Whirlpool.

**Phase 2:** Reward the Hodlers - Phase 2 starts the moment Phase 1 ends, which is when SURF #10,000,000 gets minted and rewarded to someone staked in a beach. The beaches will close, the Whirlpool will activate, and all of its accrued SURF will start getting paid out to those staking their SURF-ETH Uniswap LP tokens. There will also be many projects launching within the SURF ecosystem that will continually pay dividends to everyone staked in the Whirlpool. As a fairly distributed governance token, SURF will be controlled by those that value it the most. All of the most impactful parameters in the protocol can be adjusted through successful governance proposals, ensuring that the community of SURF hodlers can continually experiment and improve it.