> For the complete documentation index, see [llms.txt](https://pendia.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pendia.gitbook.io/documentation/token/tokenomics.md).

# Tokenomics

**Emission type:** fixed

**Total emission:** 500 million $PEN

**Blockchain:** Ethereum

![](https://1981723549-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FqAuJz6P47xxNby5s1ELh%2Fuploads%2FqjAfT4g19JhVcbvjMcZm%2FGraph.svg?alt=media\&token=3e40a326-5e42-4e9e-821e-834aadad78a1)

#### Token Distribution Model <a href="#token-distribution-model" id="token-distribution-model"></a>

| Pool              | Allocation, $PEN | Allocation, % | Cliff, months | Vesting, months |
| ----------------- | ---------------- | ------------- | ------------- | --------------- |
| Liquidity         | 400 million      | 80%           | 0             | 0               |
| User incentives\* | 35 million       | 7%            | 0             | 6               |
| Ecosystem         | 50 million       | 10%           | 3             | 12              |
| Team              | 15 million       | 3%            | 6             | 24              |

\*For the User incentives pool, 50% of the tokens is linearly vested for the first 12 months (more aggressive emission), and the other 50% is vested for the remaining 24 months.

#### $PEN token contract <a href="#usdread-token-contract" id="usdread-token-contract"></a>

Pendia operates on a self-funded model. Our objective is to execute a fair launch for the $PEN token in early January 2024, ensuring all users have equal opportunities to acquire the token from the outset.

Given our decision not to engage in public sales, presales, or venture capital funding rounds, we are introducing buy and sell taxes within the $PEN token contract. These taxes are intended to facilitate the rapid development and expansion of the Pendia platform.

* **Buy Tax**: A 5% tax will be applied to all purchases of $PEN tokens.
* **Sell Tax**: Similarly, a 5% tax will be imposed on all sales of $PEN tokens.

The revenue generated from these taxes will be reinvested into the platform, contributing to marketing efforts, community engagement, and further development projects.

These taxes represent a strategic approach to funding Pendia's growth while upholding our commitment to fairness and transparency. By avoiding traditional fundraising methods, we maintain our independence and align our financial strategies with the interests and well-being of our user community.