Update mars-token-and-distribution.mdx

docs/learn/mars-hub/mars-token/mars-token-and-distribution.mdx

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-import MarsTokenAndDistributionUrl from '@site/static/img/learn/mars-hub/mars-token-and-distribution.png';
+import MarsTokenAndDistributionUrl from '@site/static/img/learn/mars-hub/fee-distribution.jpg';
 
-# Distribution
+# Distribution of Mars Token in Mars V2
+
+In Mars V1 the Community Pool (CP) holds a large amount of MARS tokens that aren't actively used (i.e., 633.4 Million). This represents a significant portion of the total token supply locked away.
+
+Mars V2 has reduced the CP by burning most of the excess tokens, leaving only 300M MARS for future protocol needs.
+
+## Fee Distribution Mechanism
+
+50% of protocol fees used to go to the Safety Fund as axlUSDC, while the other 50% was reserved for Mars Hub stakers as MARS tokens. Mars V2 changes it.
+
+- **Safety Fund**: A portion of fees will be used to buy nobleUSDC and add to the Safety Fund.
+- **Buy and Burn**: A portion of fees will be used to purchase MARS tokens from the market and burn them, reducing the circulating supply.
+- **Buy and LP**: A portion of fees will be used to create liquidity pairs (MARS with another token like OSMO, NTRN, or nobleUSDC) on decentralized exchanges like Osmosis or Neutron. This increases the token's liquidity and potentially reduces reliance on liquidity mining incentives.
 
-Helping coordinate and align incentives of the different stakeholders involved, the MARS token is a key piece of the Mars ecosystem. The maximum supply of MARS tokens will be 1 billion and the final token allocation is as follows:
 
 <img src={MarsTokenAndDistributionUrl} style={{ paddingBottom: 15 }} />
 
-- **Token Claim (~66.6M):** To be distributed to all persons who were $MARS-Classic token holders on Terra Classic as of the applicable snapshot periods, as described [here](https://mars-protocol.medium.com/unveiling-the-mars-airdrop-and-snapshot-data-ea4f3926f2ca). These tokens will be fully unlocked and claimable upon genesis.
-- **Community Pool (~633.4M):** Governed by the Martian Council. Some of the use cases of this pool of funds could include rewarding of staking/lending/borrowing, token grants and other community building programs.
-- **Mars Contributors (300M):** Unlocking/vesting builder allocations. 1/3rd unlocks from a smart contract escrow on September 1, 2023, with the remainder unlocking linearly on a daily basis over the following two-year period. Vesting and other contractual restrictions may apply in addition to the smart contract lockup, depending on the particular token grantee. 
+
+## Overall Goals
+
+- **Optimize token distribution**: Ensure that MARS tokens are allocated efficiently and effectively.
+- **Increase token utility**: Enhance the use cases for MARS tokens beyond staking rewards.
+- **Strengthen protocol finances**: Build a more robust Safety Fund and reduce reliance on the Community Pool.
+- **Promote token liquidity**: Improve trading opportunities for MARS tokens.
+- **Create deflationary pressure**: Reduce the circulating supply of MARS tokens through burning.
+
+These changes aim to make the MARS token more valuable and the Mars Protocol more sustainable by optimizing token distribution, increasing utility, and strengthening the protocol's financial position.
+