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

# TOKENOMICS

> **The Engine of Sustainable Growth: BANA Protocol's Economic Model Proving Real-World Asset Value On-chain**

BANA's tokenomics go beyond simple issuance and distribution; they aim for a "Real-world Asset-Linked Value Enhancement Model" where the profits from physical assets directly translate into token value. Every mechanism is focused on maximizing token holder interests and ensuring the long-term stability of the ecosystem.

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#### 📑 Token Economy Detailed Guide

Explore the detailed mechanisms of the sophisticated economic ecosystem designed by BANA.

**01. BANA Token Details**

* Core Content: Technical specifications of the BANA token, network infrastructure, and real-life payment utilization models.
* Key Point: Practical utility used in medical and 16 other sectors, moving beyond tokens meant for simple transactions.

**02. Token Allocation**

* Core Content: Strategic token distribution ratios and a powerful 3-year (36-month) lock-up policy for foundation holdings.
* Key Point: A protective measure that minimizes market volatility by suppressing the initial circulating supply to less than 10%.

**03. Deflation Mechanism**

* Core Content: Buy-back and permanent burn logic utilizing up to 90% of real-world profits.
* Key Point: A "self-completing deflationary" engine where supply decreases while value increases.

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#### The 3 Core Pillars of BANA's Economic Model

| **Category** | **Design Principles**                                             | **Expected Effects**                                                     |
| ------------ | ----------------------------------------------------------------- | ------------------------------------------------------------------------ |
| Scarcity     | Constant profit-based buy-backs and permanent burns               | Maximizing scarcity through a continuous reduction in circulating supply |
| Security     | 3-year lock-up of foundation holdings with phased release         | Blocking market sell pressure and securing long-term trust               |
| Utility      | Integration of payments and benefits within real-world businesses | Creating practical demand for the token and increasing its usage value   |

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{% hint style="info" %}
**BANA's tokenomics are not a game of numbers. It is the most honest and powerful economic engine where the growth of real-world assets directly leads to an increase in token value.**
{% endhint %}