> For the complete documentation index, see [llms.txt](https://docs.tea.xyz/tea/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.tea.xyz/tea/i-want-to.../learn-about-teas-tokenomics.md).

# Learn about tea’s Tokenomics

<br>

<table data-header-hidden data-full-width="true"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td>Maximum Token Supply</td><td>100 Billion</td></tr><tr><td>Type of Supply</td><td>Governance-Balanced Token</td></tr><tr><td>Estimated Date of TGE</td><td>Q3’25</td></tr></tbody></table>

The amount of TEA tokens in circulation will never exceed 100 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:&#x20;

1. What drives demand for the token?&#x20;
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](/tea/i-want-to.../learn-about-proof-of-contribution/what-is-proof-of-contribution-overview.md). 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:&#x20;

* First, to access the ***tea*** Protocol and enable it to uniquely achieve its business goals.&#x20;
* 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.  &#x20;

***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.<br>

<table data-full-width="true"><thead><tr><th>Component</th><th>Questions</th></tr></thead><tbody><tr><td>Demand Drivers</td><td>Where does <a href="/tea/i-want-to.../learn-about-teas-tokenomics/token-demand-drivers.md">demand</a> for the TEA token come from? </td></tr><tr><td>Token Utility</td><td>How is the TEA token <a href="/tea/i-want-to.../learn-about-teas-tokenomics/token-demand-drivers.md#utility">used in the protocol</a>? Is it essential for the operation of its products? </td></tr><tr><td>Value Capture</td><td>How does the TEA token <a href="/tea/i-want-to.../learn-about-teas-decentralized-protocol/value-proposition-value-creation-and-incentives.md#value-creation">capture the value created</a> by the <em><strong>tea</strong></em> Protocol?</td></tr><tr><td>Token Distribution &#x26; Emission Schedule</td><td>How are TEA tokens <a href="/tea/i-want-to.../learn-about-teas-tokenomics/token-supply-inputs.md">distributed to various stakeholders</a> aligned to the project and at what rate do these tokens enter the circulating supply? </td></tr></tbody></table>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://docs.tea.xyz/tea/i-want-to.../learn-about-teas-tokenomics.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.