Learn about tea’s Tokenomics

Maximum Token Supply	10 Billion
Type of Supply	Deflationary
Estimated Date of TGE	Q2’24

The amount of TEA tokens in circulation will never exceed 10 Billion. TEA embeds a variety of mechanisms designed to programmatically and automatically redistribute or remove TEA from circulation via slashing and “burn” mechanisms.

What are tokenomics?

In web3, Tokenomics (short for Token Economics) is the study of how value is distributed, shared, and moved among different users engaged with a decentralized protocol. To understand Tokenomics, it’s important to understand why various blockchain projects have native cryptocurrencies. All cryptocurrencies are created to enable some decentralized application or protocol, which is a service that no single individual or entity operates. Rather than relying on a centralized organization, such as a corporation, to oversee day-to-day operations, a decentralized application or protocol is governed by a community of individuals with aligned interests.

Tokenomics addresses a few key questions related to any blockchain project. For example:

1. What drives demand for the token?

2. What is the utility of the token and how is the token used in the protocol?

3. How does the token capture value created by the protocol?

4. How are tokens distributed to various stakeholders aligned to the project?

The Tokenomics of any protocol describe how value flows throughout the protocol and assigns a set of rules to govern these value flows. Tokenomics are significant in the web3 ecosystem and can have substantial influence on the success (or lack thereof) of protocols that choose to issue a native token.

When a problem is solved, value is created

tea allows open-source developers to receive rewards for their immense contributions as builders & maintainers of the modern internet. In doing so, tea has solved a very real problem that has thus far inhibited the potential of open-source software. tea solves this by ascribing an impact metric to all open-source projects through a novel consensus mechanism: Proof of Contribution. Proof of Contribution therefore provides immense value to OSS developers and end users of enterprise software.

TEA is the native cryptocurrency token of the tea Protocol. TEA exist for two primary reasons:

• First, to access the tea Protocol and enable it to uniquely achieve its business goals.

• Second, to incentivize individuals to contribute the time, energy, and resources necessary for the tea Protocol to run – essentially a means to convert OSS developers into core contributors.

tea’s Tokenomics respond to major questions related to the protocol and the TEA token. The table below outlines these key questions and their alignment to various components of Tokenomics.

Component	Questions
Demand Drivers	Where does demand for the TEA token come from?
Token Utility	How is the TEA token used in the protocol? Is it essential for the operation of its products?
Value Capture	How does the TEA token capture the value created by the tea Protocol?
Token Distribution & Emission Schedule	How are TEA tokens distributed to various stakeholders aligned to the project and at what rate do these tokens enter the circulating supply?