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

# 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 <a href="#fda8" id="fda8"></a>

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 <a href="#id-5091" id="id-5091"></a>

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 <a href="#id-98bc" id="id-98bc"></a>

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 href="#id-4457" id="id-4457"></a>

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 <a href="#id-6e77" id="id-6e77"></a>

![](/files/mkKyzxJzOMBWi6kJKVuH)

## Initial Circulating Supply <a href="#id-46b9" id="id-46b9"></a>

[Current Token information](https://www.coingecko.com/en/coins/lendefi-token)

## PancakeSwap Liquidity Provisioning <a href="#id-6886" id="id-6886"></a>

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:

<https://bscscan.com/tx/0x9b69f1f0547754eb7f8111cd61b1c5ea11a1e15b8d6d2ad63738dde995cae553>

The project has also allocated $400,000 worth of [$LDFI](https://coinmarketcap.com/currencies/lendefi/) tokens for a potential contribution towards PancakeSwap Syrup Pool.