# 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