> For the complete documentation index, see [llms.txt](https://docs.wagmi.com/wagmi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wagmi.com/wagmi/wagmi-token/token-economics.md).

# Token Economics

### Total Token Supply

The total supply of **Wagmi** tokens is infinite, with an initial minting aimed at facilitating a 1:69 ratio migration for ICE token holders to WAGMI; post-migration, additional tokens are minted to acquire POL, incentivize leverage trading and GMI positions, as well as to build a strategy insurance fund.

### Distribution of newly minted WAGMI:

#### 1. Protocol Growth and Development (80%)

* This portion (representing 80% of all new **WAGMI** tokens) is allocated to ensure protocol growth and development.
* The uses include, but are not limited to:
  * Acquiring POL
  * Incentivizing leverage trading
  * Incentivizing GMI positions
  * Building a strategy insurance fund.

#### 2. Operational Multisig (20%)

* 20% of the newly minted **WAGMI** tokens are dispatched to an operational multisig.
* This fund controls the tokens to ensure the smooth running of protocol operations. The uses include, but are not limited to:
  * Salaries
  * Legal fund
  * Treasury building
  * Grants
  * Financing audits

### Control of POL

POL will be managed via the main multisig on each chain. Any transactions on this multisig can only commence after a snapshot vote, accompanied by a detailed description outlining the purpose and reasoning behind the intended action.

### Inflation and Rewards

* The inflation rate isn’t fixed. The protocol’s objective is to attain deflation as swiftly as possible.
* Rewards are designed to offer a competitive APR for user liquidity.
* These parameters are determined by various factors, including:
  * Target liquidity depth
  * Utilization rate
  * APR
  * Marketing requirements


---

# 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 dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.wagmi.com/wagmi/wagmi-token/token-economics.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.