> For the complete documentation index, see [llms.txt](https://dmarketplace-1.gitbook.io/dmarketplace/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dmarketplace-1.gitbook.io/dmarketplace/basics/markdown.md).

# Tokenomics

The tokenomics of dMarketplace Token ($DMP) are meticulously crafted to foster a sustainable and growth-oriented ecosystem, incentivizing active participation and ensuring long-term value appreciation

<figure><img src="https://165153773-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F7AEtzaaA1qHzwC7i7hGk%2Fuploads%2F79lVkhHak0zH0nUTu4Se%2F103.jpg?alt=media&amp;token=7a21fb60-3ecb-49d9-b5e8-dd223878e70d" alt=""><figcaption></figcaption></figure>

## a) Initial Supply

* **Total Supply:** The initial supply of $DMP is capped at 100 billion tokens..
* **Stability Mechanism:** The smart contract governance ensures a balanced token economy by regulating emission rates, burn mechanisms, and reflection distributions to maintain price stability and prevent market manipulation.

## b) Cashback&#x20;

* **Cashback Program:** Users receive a 2% cashback in $DMP for every purchase made on the platform using $DMP, directly credited to their accounts post-transaction.
* **Incentive:** This cashback incentivizes the utilization of $DMP as the preferred payment method, driving higher transaction volumes and fostering ecosystem growth

## c) Transaction Fees and Token Buyback.

### **Transaction Fees**

* **Merchant Charge Fee**
  * **Rate**: 6% fee on the amount received by merchants, applicable regardless of the cryptocurrency used.
  * **Distribution**:
    * **Payments in $DMP:**
      * 2% allocated back to the user as a reward for using $DMP.
      * 4% invested in platform development.
    * **Payments in Other Cryptocurrencies:**
      * Entire 6% directed towards platform development.
* **Liquidity Pool Fees:**
  * **Buying**: 5% fee on the purchase amount from the liquidity pool.
  * **Selling**: 5% fee on the sale amount to the liquidity pool.
  * **Allocation**: All fees are directed to the fee pool for subsequent distribution.
* **Token Transfer Fees:**
  * **Rate:** There are no fees on $DMP transfer between users.

## Token Buyback Program

To strengthen the value of $DMP and contribute to a deflationary supply model, dMarketplace has implemented a robust Token Buyback Program. This initiative allocates 40% of the platform's revenue from transaction fees toward purchasing tokens from the market. Additionally, 20% of fees collected from $DMP purchases and sales are reinvested into the program to further amplify its impact. Here's how the allocation breaks down:

* 80% will be used to buy back $DMP, reducing its circulating supply, enhancing scarcity, and driving long-term value.
* 20% will be dedicated to buying $PROOF, supporting and reinforcing the ProofPlatform ecosystem.

### Purpose of the Buyback Program:

* **Sustainable growth of $DMP**: Reduce the circulating supply of $DMP to increase scarcity and support long-term value growth.
* **Support Ecosystem Growth**: Investing in $PROOF aligns with our commitment to the ProofPlatform's success, ensuring mutual growth and innovation across the ecosystem.
* **Reinvest in the Platform:** Build a continuous feedback loop of value creation that enhances both dMarketplace and its broader ecosystem.

Note: Allocation percentages for the Token Buyback Program may be adjusted over time in response to the platform’s evolving economic landscape and growth trajectory.