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

# $GAINZ Token

$Gainz is the **native reward and bootstrap liquidity** token for GainzSwap — a critical component in aligning incentives, facilitating governance, and ensuring sustainable growth within the EDU Chain ecosystem. The total supply is **21,000,000 $Gainz**, with a carefully designed emission schedule that decreases over time.

## Overview

* **Token Name:** $Gainz
* **Total Supply:** 21,000,000
* **Emission Model:** Deflationary, distributed primarily to liquidity stakers (via GToken).
* **Key Utilities:**

  * Protocol Fees Payment (buy & burn mechanism)
  * Governance rights (when staked via liquidity pools / GToken)
  * Security deposit for projects ILOs (via GToken)
  * Incentivizing liquidity, user engagement, bounties, and quests

## Distribution Breakdown

<figure><img src="/files/HLApt7XUiwNx7nNO0sM0" alt=""><figcaption><p>$Gainz Distribution</p></figcaption></figure>

### Primary Allocation of 21 Million $Gainz

The total mint of **21 000 000 $Gainz** is split into four main buckets. The **Ecosystem Distribution** (65%) is held in the $Gainz token contract and programmatically allocated according to the rules below.

<table><thead><tr><th width="219.5">Category</th><th width="100" align="right">% of Total</th><th width="150.5" align="right">Amount (Tokens)</th><th>Notes</th></tr></thead><tbody><tr><td><strong>Ecosystem Distribution</strong></td><td align="right">65%</td><td align="right">13 650 000</td><td>Held in‑contract and emitted per protocol rules</td></tr><tr><td><strong>Liquidity Incentive</strong></td><td align="right">18%</td><td align="right">3 780 000</td><td>Stablecoin or $EDU pool(s) to bootstrap new and critical pairs with $Gainz token</td></tr><tr><td><strong>Public Sale</strong></td><td align="right">7%</td><td align="right">1 470 000</td><td>Strategic community sale for Council SFTs (council members)</td></tr><tr><td><strong>Strategic Investments</strong></td><td align="right">10%</td><td align="right">2 100 000</td><td>Partnerships, grants, ecosystem expansion</td></tr><tr><td><strong>Protocol &#x26; Core Team</strong></td><td align="right">—</td><td align="right"><em>(see Ecosystem)</em></td><td>Allocated from Ecosystem Distribution through a decay function</td></tr></tbody></table>

### Ecosystem Distribution (13 650 000 $Gainz)

This 65% tranche is controlled by the $Gainz token contract and dispensed automatically through a decay function:

<table><thead><tr><th width="186">Sub‑Category</th><th width="125" align="right">% of Ecosystem</th><th width="137" align="right">Amount (Tokens)</th><th>Mechanism</th></tr></thead><tbody><tr><td><strong>Staking Rewards</strong></td><td align="right">70%</td><td align="right">9 555 000</td><td>Emitted to GToken holders, <strong>throttled</strong> by real‑time $dEDU supply (see below)</td></tr><tr><td><strong>Liquidity Incentives</strong></td><td align="right">15%</td><td align="right">2 047 500</td><td>Bootstrap liquidity for external projects’ pools and select pair incentives</td></tr><tr><td><strong>Bounties, Airdrops &#x26; Quests</strong></td><td align="right">5%</td><td align="right">682 500</td><td>Community engagement, marketing campaigns, and special event rewards</td></tr><tr><td><strong>Team &#x26; Protocol</strong></td><td align="right">10%</td><td align="right">1 365 000</td><td>Emitted following the decay function.</td></tr></tbody></table>

### **Staking Rewards Throttled by $dEDU Supply**

* The **Staking Rewards** pool (9 555 000 $Gainz) is distributed to GToken holders (liquidity stakers).
* However, the **actual emission rate** at any given time is **dependent on the circulating supply of $dEDU**, as enforced by the Governance contract via the $dEDU contract.
* **More $dEDU → higher staking emissions**; **less $dEDU → lower emissions**, ensuring that rewards scale with community participation and liquidity growth.

### How It Works in Practice

1. **Upfront Allocations**\
   All allocations, except **Ecosystem Distribution**, are distributed and held in separate addresses pending when they will be used for their purpose. &#x20;
2. **Ecosystem Distribution Lockup**\
   All 13.65 M tokens reside in the $Gainz contract. They are not released upfront but emitted per the above schedule.
3. **Automated Emissions**
   * **Staking rewards** flow to GToken balances each second, dynamically adjusted by the on‑chain $dEDU supply.
   * **Liquidity incentives**, **bounties**, and **team** are released based on the decay function following certain milestone triggers.
4. **Supply Cap & Deflation**\
   Once the 21 M cap is reached, no new $Gainz can be emitted. Meanwhile, protocol fees are used to **supply the decay function**, creating a sustainable ecosystem tokens distribution.

This two‑tiered distribution model aligns long‑term value accrual with active community participation, rewarding those who stake, delegate (via $dEDU), and contribute to GainzSwap’s liquidity and governance.

## Utility & Governance

### Governance

* **Staking $Gainz via GToken:**\
  Liquidity providers who stake their LP tokens receive **GToken**, which entitles them to governance rights. Because $Gainz is distributed to GToken holders, it indirectly grants greater say in protocol proposals to those most invested in the ecosystem.
* **ILO Listings**\
  Only GTokens having $Gainz liquidity pools can be used as security deposits for creating ILO listings. Though all tokens listed on GainzSwap becomes governance tokens through GToken, only $Gainz will have the power to influence new token listings.
* **Protocol Upgrades & Decisions:**\
  Future on-chain voting mechanisms may use staked $Gainz (or GToken) balances to determine voting power, enabling a **community-centric decision process**.

### Protocol Fees & Buy-Burn

* **Swap Fee Payments in $Gainz:**\
  A portion (or all) of the fees collected from trading on GainzSwap are used to **purchase and burn $Gainz**, creating a **deflationary pressure** that benefits long-term holders.
* **Long-Term Sustainability:**\
  This buy-and-burn model aligns platform growth with token value, reducing sell pressure and fostering a more balanced supply-demand dynamic.

### Incentives & Rewards

* **Liquidity Mining:**\
  Stakers of GToken (which represents locked LP tokens) receive $Gainz emissions proportionate to their share.
* **Bootstrap Liquidity**\
  To foster ecosystem wide growth, GainzSwap will support projects, through governance, with liquidity allocation from token distribution (see Ecosystem Distribution above)
* **Bounties, Airdrops, & Quests:**\
  A percentage of $Gainz is reserved for marketing, development bounties, and quest-based user engagement. This encourages active participation and user-driven innovation.

***

## Putting It All Together

$Gainz is engineered to:

1. **Reward Positive Action:** Users who contribute liquidity or engage with the protocol can earn $Gainz, creating a virtuous cycle of expansion.
2. **Empower Governance:** $Gainz fosters a community-led environment where those contributing the most hold the most influence.
3. **Protect Long-Term Value:** Through daily emission reductions and a robust buy-and-burn mechanism, the protocol safeguards against uncontrolled inflation.
4. **Expand the EDU Chain Ecosystem:** A portion of $Gainz is dedicated to partnerships, bounties, and quests, driving growth beyond just GainzSwap.

Whether you’re a liquidity provider, a project partner, or simply a trader intrigued by the potential of DeFi on the EDU Chain ecosystem, $Gainz offers both **tangible incentives** and **long-term strategic value**. By aligning rewards with contributions, $Gainz ensures that GainzSwap’s community and token holders thrive together — laying a strong foundation for the future of decentralised finance on EDU Chain.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.gainzswap.xyz/tokenomics/usdgainz-token.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
