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

# 🥇┃LFGSwap Tokenomics (Arbitrum)

<figure><img src="https://395405669-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDmMFHUEAOlqUxU9yMriC%2Fuploads%2FGT30KGFbFvgnHBSjGbzy%2F20%20LfgSwap%20Tokenomics%402x.jpg?alt=media&amp;token=83801605-15da-429f-aaf2-5a6e45b3d954" alt=""><figcaption></figcaption></figure>

* **Ticker Symbol:** LFG
* **Chain:** Arbitrum
* **Max Supply:** 300,000,000 LFG tokens
* **Start of Supply:** 42,000,000 LFG tokens
* **Contract Address:**&#x20;

{% hint style="success" %}
***All further changes to the distribution of LFG tokens per block will only be made via community voting.***
{% endhint %}

<figure><img src="https://395405669-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDmMFHUEAOlqUxU9yMriC%2Fuploads%2FrPBWtCndvGq5xRTq1GwC%2FARB%20TOTAL%20SUPPLY.png?alt=media&amp;token=6e3ef99f-037c-4813-b109-c6949e8676b3" alt=""><figcaption></figcaption></figure>

### **Initial Allocation**

* **7% (21,000,000 LFG)** for Liquidity
* **7% (21,000,000 LFG)** for Public Sale, TGE 65%, 35% need to add an equal amount of LP linear vesting
* **15% (45,000,000 LFG)** for CEX Reserve Fund
* **65%(195,000,000 LFG)** for Farm — unlocked linearly in 60 months
* **6% (18,000,000 LFG)** will be allocated to LFG community members community rewards — unlocked linearly in 60 months

### W**hat is a Maximum Supply?**

Cryptocurrencies and tokens built on a blockchain have set up, algorithmically created release schedules. This means that we can accurately predict how many coins will be made by a specific time.

Max supply — the coins/tokens that will be ever produced. As soon as the maximum supply is reached, there will be no more of these coins or tokens minted.

{% hint style="success" %}
*The maximum supply of LFG tokens(*&#x41;rbitru&#x6D;*) is **300 000 000***
{% endhint %}

### W**hat is a Total Supply?**

Total supply — tokens/coins that exist now. They can be in circulation or somehow locked.

**The formula for calculating is quite simple** 🔽

{% hint style="info" %}
*The sum of tokens/coins that were already mined (or issued) MINUS the total of coins that were burned or destroyed = Total Supply*
{% endhint %}

### W**hat is a Circulating Supply?**

Circulating supply — the tokens/coins that are publicly available and circulating in the market. It is possible for a cryptocurrency circulating supply to increase or decrease over time.

**The formula for calculating** 🔽

{% hint style="info" %}
*Total supply MINUS all the blocked tokens = Circulating Supply*
{% endhint %}

### W**hat is Market Capitalization?**

Market Capitalization (or Market Cap) in the blockchain industry refers to a measure of cryptocurrency market size or, in other words, the crypto asset's value.

**The formula for calculating** 🔽

{% hint style="info" %}
*Calculating Supply MULTIPLY BY the price of the crypto asset = Market Cap*
{% endhint %}

Use the **CoinMarketCap** website to track and analyze LFG conditions on the market.

## What Can I Do on LFGSwap?

* Exchange ERC-20 tokens with the lowest fees on Arbitrum
* Provide liquidity to the pool and earn income from token swap transactions
* Stake your LP tokens to earn LFG tokens&#x20;
* Stake LFG tokens to earn more LFG tokens&#x20;
* Stake LFG tokens to earn tokens of other projects&#x20;
* Stake tokens of other projects and earn LFG tokens in return&#x20;
* Try your luck in the LFGSwap Lottery and win huge prizes in LFG tokens
* Earn referral rewards via our multi-type Referral Program
* Buy new tokens directly for LFG on LFGSwap by participating in the Initial DEX Offerings (IDO)
* Buy/Sell NFT on LFGSwap Marketplace with the lowest fees on ARB
* Stake NFT to earn multiple tokens

## What is Cryptocurrency Burning?

Simply put, it means removing coins from circulation, thereby reducing the total supply. Tokens are usually transferred to a burn address during this process.

The tokens/coins get burned for two main reasons:

* To increase their value
* To keep their condition steady

**LFG Tokens Burn**

LFGSwap DEX has its Deflationary Mechanisms. Our platform always develops and aims to enhance ones. The LFG burn happens to keep the token valuable and less volatile.

{% hint style="warning" %}
***LFG token burning typically occurs once a month. LFGSwap reserves the right in its sole discretion to change or amend the burning schedule at any time and for any reason.***
{% endhint %}

## LFGSwap Deflationary Mechanisms 🔥

* All the **rewards** from accounts with no referrer are used for LFG token burning&#x20;
* Selling LFG tokens will automatically burn **0.9%** of the sale
* LFG Auto Compound **performance fee** is used for token burning&#x20;
* LFGSwap Holder pool **early-withdrawal fee** is used for token burning&#x20;
* Auto Compound pool **early-withdrawal fee** is used for token burning&#x20;
* **5%** of the trading fees are used for buying the LFG tokens back from the market and burning them&#x20;
* **13%** of all the purchased lottery tickets are used for token burning&#x20;
* **10%** of LFG from NFT Sales Revenue&#x20;
* **10%** of the fee charged in case of an early withdrawal from the user’s game balance
* **50%** **of the 1%** Marketplace commission fee is used for the purchase of LFG and burning them
* **0.5%** Royalty Fee from each sale of LFGSwap Robbies NFT Earn Collection
* **1%** Royalty Fee from each sale of NFTs Collection
* **15%** from IDOs revenue