# Tokenomics

### Token Overview

* Token Name: DERP
* Ticker: DERP
* Max Supply: 100,000,000
* Decimals: 6
* Policy ID: 1127d22df8f6896c5d226fca9a6e898c73c1d88200268f1f4ae58108<br>

***

### Allocation Breakdown

#### **Liquidity Pool** – 10% (10,000,000 DERP)

Funded using revenue from Derp Birds’ mining operations and paired with ADA to provide deep and stable liquidity across decentralized exchanges.

{% hint style="warning" %}
Disclaimer: Currently, approximately 3% of the total liquidity allocation has been deployed to LP. The remaining 7% is reserved and will be used strategically to seed liquidity across selected platforms, ensuring strong market support and sustainable trading activity.
{% endhint %}

#### **Reward Pool – 60% (60,000,000 DERP)**

Used for in-game rewards, [staking incentives](/derp-birds/ecosystem/the-derp-app/staking.md), [fortification](/derp-birds/gold-rush-outposts/outposts-overview/fortifying.md) and other earning mechanics within [Adventures in Derpetonia](/derp-birds/adventures/overview.md). This pool is distributed over time as players engage with the ecosystem.

#### **Marketing & Promotion – 5% (5,000,000 DERP)**

Allocated to the founding and core team, governed by a structured vesting schedule that supports long-term project alignment and contribution.

#### Team – 15% (15,000,000 DERP)

Allocated to the founding and core team, governed by a structured vesting schedule that supports long-term project alignment and contribution.

#### Other Initiatives – 10% (10,000,000 DERP)

Dedicated to strategic ecosystem opportunities including yield farming (e.g., Minswap), liquidity partnerships, and future community-focused programs.

***

### Token Supply and Policy ID

The policy ID for DERP V2 remains open, allowing for flexible and programmatic minting and burning of tokens based on ecosystem activity.

Only 40% of the total supply is pre-minted at launch, covering allocations for liquidity, the team, marketing, and other initiatives.

The reward pool (60%) is not pre-minted. Instead:

* When users exchange DD to DERP, new DERP tokens are minted.
* When DERP is exchanged back to DD, the DERP tokens are burned.<br>

This structure ensures that the circulating supply accurately reflects real participation and helps avoid unnecessary inflation.


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