# Tokenomics The DeEEP Network Utility ($DEEEP) token is central to DeEEP Networks ecosystem, acting as the primary currency for transactions within the network. It facilitates payments for hosting services, purchasing future hardware, and attracting new service offerings. Additionally, $DEEEP is a core driver of [governance](/introduction/using-usddeeep/governance.md), staking, and balancing network capabilities with workloads. The $DEEEP token is inherently inflationary, with tokens being minted in accordance with the growth of the Device network. As new Devices join the network, additional tokens are minted to match the increase, ensuring balance between token supply and the expanding infrastructure. {% hint style="info" %} This inflationary behavior is linked directly to an increase network computing capacity and only released as [Utilization Rewards](/introduction/earning-usddeeep.md#utilization-rewards) {% endhint %} ## **Minting** ### **Device Operators** The $DEEEP token is minted to Device Operators via two reward types: * [Plug-In Rewards](/introduction/earning-usddeeep.md#plug-in-rewards) (only for the first 50,000 Devices) * [Utilization Rewards](/introduction/earning-usddeeep.md#utilization-rewards) rewards minted for workloads run on the entire network evenly distributed between all active devices {% hint style="info" %} $DEEEP will not be pre-mined or airdropped. The only source of tokens is via the rewards above, [Founders Rewards](#founders-rewards), and the [Community Fund](#community-fund) {% endhint %} ### **Testnet to Mainnet Conversion** DeEEP with launch initially with a testnet for the first devices shipped. For host participants in the testnet before the mainnet launch a fair conversion to the best of our ability based on work done will be applied to migrate testnet participants to mainnet. Things we might do in testnet like accelerated time for testing contracts, bugs/errors, hacks, etc. will not affect the conversion. ### **Community Fund** To support network growth and community initiatives, a total of 575,000,000 $DEEEP tokens will be minted and locked for the community fund upon the token's release. The distribution of these tokens is designed to align with network expansion: * **Unlocking Mechanism**: At the activation of the first DePIN device on the network, 1/2 of the community fund will be funded. Then, for every 2,000 DePIN devices activated, 1/50th (11,500,000 $DEEEP) of the community fund will be unlocked. * **Usage:** Hackathons, community code contribution rewards, bug bounties, partnerships, and Governance Proposal incentives. Full details are on the [Community Fund](/introduction/using-usddeeep/community-fund.md) page. ### Founders Rewards Founders Rewards will be minted to smart contract owned wallet(s) for distribution to Founders of the DeEEP network upon meeting performance metrics. There are **two sets** of metrics that **both must be met to unlock the tokens**. Both sets are measurable by smart contract. #### 1. Devices on the Network For each DIN (device identity NFT) that is minted, 0.12 times the of the quantity tokens allocated to that DIN are eligible to be distributed to Founders, this rewards the founding team with the growth of new users on the network. #### 2. Performance of the Network These tokens eligible by the DIN creation events are then unlocked to the Founders by smart contract upon the following milestones: * 20% at mainnet launch * 20% at 5,000+ devices and 50%+ filled capacity * 20% for quantity of different node/service types deployed * 5% for the first 50 * 5% at 100 * 5% at 150 * 5% at 200 * 20% at 10,000 devices live * 20% at DAO/DAC launch {% hint style="info" %} **Why are Founders Rewards pre-minted?** We did not want to pre-mint founders rewards. However, the guidance in the pending FIT21 legislation states that the 12 month clock classifying the token as a commodity by being sufficiently distributed would be reset by minting token to Founders *(affiliated person)* after the creation. In the pending [FIT21](https://www.congress.gov/bill/118th-congress/house-bill/4763/text#HF3B153F8836F4B99994DD333E0EC973B) it specifically calls out that tokens designated for non-end users (in this case founders) should be created at the initial block and "made available over time." Based on our interpretation of this, the tokens need to be minted and locked. {% endhint %} ### Maximum Supply The maximum supply is 83,822,360,000 tokens. This allows for up to 1,000,000 devices at the current Utilization Rewards rate. ## Examples *** ### Assumptions * The launch Device is currently being approximated at having a Calculated Performance Rating (CPR) of 120. This would result in a [Utilization Reward](/introduction/earning-usddeeep.md#utilization-rewards) of 72,000 $DEEEP per device. *CPR can vary between different hardware devices, and in these models is assumed to stay constant at 120.* ### **Token Breakdown** A Device which onboards in the first Tier: * [**Plug-In Rewards**](/introduction/earning-usddeeep.md#plug-in-rewards): 120,000 $DEEEP * [**Utilization Rewards**](/introduction/earning-usddeeep.md#utilization-rewards): 72,000 $DEEEP * [**Hosting Fees**](/introduction/earning-usddeeep.md#hosting-fees): 50% The following is based on the **initial batch of 1,776** DeEEP Devices. * **Max Available Supply**: 669,411,040 $DEEEP * [**Plug-In Rewards**](/introduction/earning-usddeeep.md#plug-in-rewards): 213,120,000 $DEEEP * [**Utilization Rewards**](/introduction/earning-usddeeep.md#utilization-rewards): 127,872,000 $DEEEP * [**Community Fund**](#community-fund): 287,500,000 $DEEEP * [**Founders Rewards**](#founders-rewards)**:** 40,919,040 $DEEEP (Maximum unlockable)
The following is based on **50,000** DeEEP Devices. * **Max Available Supply**: 7,214,360,000 $DEEEP * [**Plug-In Rewards**](/introduction/earning-usddeeep.md#plug-in-rewards): 2,328,000,000 $DEEEP * [**Utilization Rewards**](/introduction/earning-usddeeep.md#utilization-rewards): 3,600,000,000 $DEEEP * [**Community Fund**](#community-fund): 575,000,000 $DEEEP * [**Founders Rewards**](#founders-rewards)**:** 711,360,000 $DEEEP (Maximum unlockable)
The following is based on **60,000** DeEEP Devices. * **Max Supply**: 8,020,760,000 $DEEEP * [**Plug-In Rewards**](/introduction/earning-usddeeep.md#plug-in-rewards): 2,328,000,000 $DEEEP * [**Utilization Rewards**](/introduction/earning-usddeeep.md#utilization-rewards): 4,320,000,000 $DEEEP * [**Community Fund**](#community-fund): 575,000,000 $DEEEP * [**Founders Rewards**](#founders-rewards)**:** 797,760,000 $DEEEP (Maximum unlockable)
The following is based on **1,000,000** DeEEP Devices. * **Max Supply**: 83,822,360,000 $DEEEP * [**Plug-In Rewards**](/introduction/earning-usddeeep.md#plug-in-rewards): 2,328,000,000 $DEEEP * [**Utilization Rewards**](/introduction/earning-usddeeep.md#utilization-rewards): 72,000,000,000 $DEEEP * [**Community Fund**](#community-fund): 575,000,000 $DEEEP * [**Founders Rewards**](#founders-rewards)**:** 8,919,360,000 $DEEEP (Maximum unlockable)

A chart of maximum available supply with all smart contracts being fulfilled at 100%

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