# Tokenomics

## Initial Token Allocation

#### The initial token supply will be minted and allocated as below:

![](https://3602544570-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSm58xQyOe1d1i3PkM5Wv%2Fuploads%2F44IhCPqKLKqj5DGzZaK3%2FTokenomics%20Chart.png?alt=media\&token=36aa3a3c-4eac-4499-9160-56cb66dd5ba4)

**Total token supply is 500,000 tokens. Minted as follows:**

* **90% - 450,000 tokens - Distribution Pool:** This is how we will pay for rewards. The current payout for nodes is 0.1 $ENC per day.
* **8% - 40,000 tokens - Operations Pool:** Used for protocol upkeep, talent acquisition (hiring developers, mods, graphic designers), and funding marketing campaigns to increase project awareness. This includes team allocation of 2%. The team have not sold any of their allocation. 
* **2% - 10,000 tokens - Liquidity Pool:** Deployed to create a Joe LP. Initial liquidity was $5k USD denominated in AVAX resulting in a launch price of $0.50. Liquidity was locked on launch with DX Sale for 90 days and will be extended further if migration is deemed not to be required. 

{% hint style="warning" %}
400,000 tokens were burned from the Distribution Pool on 26 March 2022. As of 28 March 2022, the Distribution Pool now holds 50,000 tokens. This still provides a sufficient reward runway of more than 1 year, assuming 1,000 nodes created.\
\
This was done to reduce circulating supply and market capitalisation to benefit holders. 
{% endhint %}

## Taxes and Restrictions

We believe in creating low barriers to entry and exit for our investors. To this end there will be no buy tax, and no sell tax. 

A claim tax of up to 10% may be implemented to reduce sell pressure as needed and if supported by community vote.