# SPAWN Token

Below is the first draft for $SPAWN tokenomics. 

Both $SPAWN & Staking contract will launch post-mint to ensure the Dev Team has the sufficient time required to properly focus and test this feature thoroughly, as to ensure the most value to our community. 

## Token

[$SPAWN](https://snowtrace.io/token/0x52628F8Ea702c51C19B43897D67e4b2845a71B08) is an ERC-20 token with a max supply of 500,000,000. 

The supply is hard-capped and there is no ability to mint/increase the supply in the contract.

## Burn/Fees

$SPAWN is a deflationary token by design, as a result, it will apply the following fees during each transaction: 

* **10% Burn** - Will go to [0x000000000000000000000000000000000000dead](https://snowtrace.io/address/0x000000000000000000000000000000000000dead).
* **5% Transaction** - Will go to the [Community Gnosis Safe](https://snowtrace.io/address/0xd18b4d25ab1266d86f17f8fd6f1b3110ba7765c1) to be used at a later date.

## Staking Emissions

The tokenomics of $SPAWN are set to pay inflation to the staking class. 

This inflation occurs at a rate of 48 $SPAWN per day (2 per hour) for each NFT staked.

The emissions will continue for a minimum of 3.8 years (if every NFT was staked 100% of the time), so it will likely last a lot longer than this. At this point, $SPAWN becomes a truly deflationary token.

## Supply Distribution

We will distribute $SPAWN as follows:

* **75% NFT Staking Rewards -** This will reside in the Staking contract and be used to pay the staking emissions as per [Staking Emissions](#staking-emission).
* **20% Liquidity Reserves -** If the community decides that they would like to give a monetary value to $SPAWN and trade their earned tokens. This allocation will then be used to create the initial SPAWN/AVAX Liquidity Pool (LP). The AVAX to create this LP would come from the treasury and would be time-locked accordingly with a relevant provider.
* **5% Team** - Team allocation.

## Token Utility

$SPAWN utility is as follows:

* **Breeding** - Ability to burn $SPAWN in return for an NFT from future collections, which in turn reduces the circulating supply of $SPAWN. 
* **Trading** - If a Liquidity Pool is created, then users will be able to buy/sell tokens on Trader Joe for monetary value.
* **Merch Store Discount** - $SPAWN can be burned in return for a discount in the store.
* **Exclusive Access** - Holders of more than (?) $SPAWN will gain access to exclusive Discord channels. 
* **Raffles** - $SPAWN can be exchanged for raffle tickets which will give holders a chance to win some amazing prizes. More tickets you have, the higher chance of winning!


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