# Tokenomics

## Token Utility and Use-cases

The DigiWear Network token $DGW is used as an incentivisation vehicle to grow and provide fluidity to the decentralized network.

* **Staking/LP:** $DGW tokens staked in pools receive a portion of the transaction fees taken by the marketplace. Those who provide liquidity through DEX's also are rewarded for facilitating token adoption.
* **Exclusive Sales:** Participating in exclusive product drops will require a certain $DGW threshold.
* **Escrow Deposits:** $DGW tokens will be used to deposits for both parties based on the calculation of item cost.
* **Governance:** $DGW token holders are able to vote on network upgrades, marketplace products and digital avenues.

## Token Metrics

There are a total of 500 million $DGW tokens, with the distribution plan as follows:

| Allocation                | %  | Vesting                                                     |
| ------------------------- | -- | ----------------------------------------------------------- |
| Seed                      | 6  | 10% unlocked on TGE, then monthly vesting over 9 months     |
| Private A                 | 6  | 10% unlocked on TGE, then monthly vesting over 9 months     |
| Private B                 | 3  | 10% unlocked on TGE, then monthly vesting over 6 months     |
| Public                    | 2  | 100% unlocked on TGE                                        |
| Advisors                  | 6  | 0% unlocked for 1 month, then monthly vesting over 9 months |
| Marketing                 | 10 | 10% unlocked on TGE, then monthly vesting over 12 months    |
| Ecosystem & Development   | 25 | 10% unlocked on TGE, then monthly vesting over 36 months    |
| Rewards                   | 20 | 2-year vesting period starting from Mainnet launch          |
| Liquidity & Market Making | 2  | 100% unlocked on TGE                                        |

## Rewards

Users will be incentivised to stake $DGW tokens with a dedicated reward pool and emission schedule that increases based on the amount staked. Monthly, users will receive extra tokens by locking their holdings for specific periods. After the 2-year vesting period the protocol will switch to a transaction fee system, where part of fees on the marketplace will be awarded to stakers.

A portion of the rewards is set aside for liquidity providers on DEX's. Monthly tokens are vested based on the amount of liquidity a participator provided in the period.&#x20;

