# What are the tokenomics?
## Transaction Fees
**1% Transaction Fee** — Given back to all token holders\
**1% Buy Back Fee —** Used to Buy Back and Burn tokens\
**1% Wallet Fee** — Protocol & marketing funds
### Tx Fee % to Holders (1%)
The transaction fee % distributed to holders. This fee will be collected from all transactions as a percentage of the transaction token amount and reflected to current holders immediately. The fee is paid in the [$LDFI](https://coinmarketcap.com/currencies/lendefi/).
### Tx Fee % to Buyback Tokens (1%)
Hyper-deflationary mechanism.
The fee will be collected from all transactions as a percentage of the transaction token amount. Once the token contract holding exceeds 0.1% of the total supply, automated swap will be executed on a sell transaction and BNB will be added to the token contract. Once the BNB balance of the token contract exceeds 1 BNB, on a sell transaction 1% of the available BNB balance will be used to buy back and burn [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens.
### Tx Fee % Wallet (1%)
The transaction fee % sent to the Lendefi Protocol’s multi-sig wallet.\
These funds will be used to fund Protocol and Marketing expenses.
### Excluded Addresses from Tx Fees
The following addresses have been excluded from the Tx Fee’s
#### Lendefi Wallets
[0x30DD781D2143fE32C36E894a049898f268b82092](https://bscscan.com/address/0x30DD781D2143fE32C36E894a049898f268b82092)\
[0x0009f605338D882A4720b92BBd831B2E64349B7A](https://bscscan.com/address/0x0009f605338D882A4720b92BBd831B2E64349B7A)\
[0x417c247503f1Ab27cd93715C61fAf80280c1DC55](https://bscscan.com/address/0x417c247503f1Ab27cd93715C61fAf80280c1DC55)
#### Vesting Contract
[0xc598d81c62f6391b2412d02a78fa3f3affe58b52](https://bscscan.com/address/0xc598d81c62f6391b2412d02a78fa3f3affe58b52)
### Excluded Addresses from Rewards
#### Vesting Contract
[0xc598d81c62f6391b2412d02a78fa3f3affe58b52](https://bscscan.com/address/0xc598d81c62f6391b2412d02a78fa3f3affe58b52)
#### LP Contract
[0x86f56bf6e0fc7d0a8b1686f7714e82ddc1eb93c2](https://bscscan.com/address/0x86f56bf6e0fc7d0a8b1686f7714e82ddc1eb93c2)
## Voting
Any address holding over 1% of the total [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens can create proposals for Protocol changes. Those changes can then be decided upon via voting on the DAO. See the [governance article](/lendefi-finance/faqs/how-is-the-project-governed.md) for more information.
## Fees
The difference between the interest rate the borrower pays and the rate the lender receives, otherwise known as the "**spread**", will be used to purchase [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens from the market for the purpose of burning and rewards.
## Token Burning
Through a process known as burning, [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens will be burnt, lowering the total and circulating supply. This will increase the value of [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens, creating further value for token holders.
## Rewards
A variety of rewards will be given to encourage the growth of the Protocol and the creation of value for token holders. Reward options will include **Staking**, **Liquidity**, **Liquidation** and **Yield Farming** rewards.
Token Price (will be updated soon)
## Token Allocation
## Initial Circulating Supply
[Current Token information](https://www.coingecko.com/en/coins/lendefi-token)
## PancakeSwap Liquidity Provisioning
250,000,000 LDFI | 100,000 BUSD (equivalent in BNB)\
\
The LP has been permanently locked via transferring the locking contract to a burn address as per the following tx:
The project has also allocated $400,000 worth of [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens for a potential contribution towards PancakeSwap Syrup Pool.
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