6. Economic Model

DegenFi uses $DGEN as its core platform asset with a total supply of 1 billion tokens, allocated as follows:

• Ecosystem Development (10%): Supports platform operations and growth, including R&D, marketing, and user acquisition.

• Community Incentives (70%): Rewards platform users through staking, gaming, lending, and more. These tokens will be distributed based on participation in events, tasks, and contributions, strengthening the platform’s ecosystem.

• Team & Advisors (5%): Rewards the founding and development teams as well as advisors, ensuring a long-term commitment to platform innovation. These tokens are locked for two years and vested linearly over 12 months.

• Foundation & Strategic Collaborations (10%): Used for partnerships and alliances, including collaboration with other Memecoin projects, DeFi platforms, and related ecosystems.

• Liquidity Pool & Marketing (5%): Provides liquidity on DEXs, ensuring sufficient depth and market liquidity for $DGEN.

6.1 Token Utility

$DGEN serves several core purposes within the DegenFi platform:

1. Governance: Holders can participate in platform governance by proposing and voting on key decisions such as adjustments to the token economy, new feature rollouts, and partner selections.

2. Payment Asset: Used to pay transaction fees in futures and options trading, as well as for in-game purchases and other payments in the DegenFi ecosystem.

3. Rewards: Users can earn $DGEN by taking part in staking, lending, gaming, DeFi mining, and liquidity mining.

4. Staking Asset: Users can stake $DGEN to borrow other assets (e.g., USDT or ETH) or secure higher loan limits or lower interest rates.

6.2 Burn Mechanism

DegenFi incorporates a token burn strategy to increase scarcity and potentially drive token value. The burn mechanism includes:

1. Transaction Fee Burn DegenFi permanently burns 10% of each transaction fee, removing those tokens from circulation.

2. Gaming Rewards Burn To maintain Memecoin scarcity, 5% of each distributed reward in gaming scenarios is burned, reducing the circulating supply of $DGEN.

3. Platform Revenue Burn DegenFi allocates 3% of its total revenue for periodic buybacks and burns of $DGEN, further limiting circulating supply and supporting long-term token value.

4. Scheduled Burns During the initial phase of token issuance and at regular intervals thereafter, large-scale burns will be conducted to enhance scarcity and reward holders.