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

# Tokenomics

## LUNAR token tokenomics

-Total Supply: 10,000,000,000 $LUNAR (10 Billion)\
-Presale and initial liquidity: 84%\
-Marketing: 3% (locked for 1 month)\
-Team Fund: 4% (locked for 6 month)\
-Community Development: 9% (locked for 1 month - renew lock monthly upon community vote)

There is a 10% tax on all transactions to reward holders/ stakers \
-8% will be converted to BNB \
-2% will be kept as $LUNAR token

**How Staking Work**\
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![](https://3002367505-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MclkbDKb_ArQBEcTi-Y%2F-McmVkkKLcbmVYMXGC7T%2F-McmXvrHPe-p2Wt4OoSG%2FStaking.png?alt=media\&token=5951b492-d6df-4f13-b3f1-41bc4f9eed98)

Example:

-User A purchase 10 BNB worth of $LUNAR token on Pancakeswap\
-User A will only receive 9 BNB worth of $LUNAR token\
-1 BNB worth of $LUNAR token will now be distributed automatically  to all the holders/stakers via our smart contract (0.8 BNB and Lunar token worth of 0.2 BNB)

## **Deflationary Mechanics**

As aforementioned, the LunarSwap ecosystem will consist of multiple tools for DEX trading. There will be fee implemented on using these tools, which will be paid in $LUNAR token.\
**50%** of all the fee collected will be sent to the **burn address**: 0x000000000000000000000000000000000000dead

Besides that, as we have 2% reward in $LUNAR token, the burn address will **keep on receiving** more and more $LUNAR token, which in turn **reduces** the total supply of $LUNAR token and make it **deflationary**.<br>