> For the complete documentation index, see [llms.txt](https://nearp2p-admin.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nearp2p-admin.gitbook.io/docs/tokenomics.md).

# Tokenomics

## **Characteristics**

We have applied the following principles:

1. All tokens are created on day one. No more tokens will ever be issued and so the token starts from a position of zero inflation.
2. The project itself charges fees in NEAR, USDC, and other tokens, and pays out the gains to token holders. This creates value flow back to the token holders in high value tokens, an upward pressure on token price. 
3. There are 2 tokens, SWAPY token special for liquidity and FRIENDLY HORSES NFT special for community governance. Fees flow to the DAO to provide all the funding necessary to support the maitenance of the project, support community activities and further development.

## **General Information**

**SWAPY** is a Governance token that also rewards its holders with a protocol revenue sharing model.

* Token name: Swapy
* Ticker: SWPY
* Fungible Token Contract: TBD
* Fungible Token Standard: NEP-141
* Fixed Supply: 21,000,000
* IDO: TBD

**Friendly Horses** are non-fungible tokens with the purpose to giving voting power and also rewards its holders with a protocol revenue sharing model.

* NFT Collection name: Friendly Horses
* Smart Contract: friendly.freehorses.near
* Fungible Token Standard: NEP-141
* Fixed Supply: 3,333
* Seconday market: Paras.id

## Swapy **Token Allocation**

| Categories           | Allocation | Release Schedule      |
| -------------------- | ---------- | --------------------- |
| Private Fundraising  | 34%        | TBD                   |
| Treasury             | 21%        | N/A                   |
| Core Team Incentives | 15%        | 4-year linear release |
| Marketing Fund       | 10%        | 4-year linear release |
| Development Fund     | 8%         | 4-year linear release |
| NFT allocation       | 5%         | Locked                |
| IDO                  | 3%         | TBD                   |
| Early Users Airdrop  | 2%         | TBD                   |
| Future Airdrops(s)   | 1%         | TBD                   |
| Strategic Airdrop    | 1%         | Q4 2022               |

![Tokenomics](/files/X3LqJ3KOfNQcYrMue3Dz)

## **Swapy Utility**

1. **Earning protocol revenue**: Users who stake Swapy tokens to earn fees generated by the protocol
2. **Governance** (Under Development): Users who stake Swapy to participate in the governance and vote on key proposals

## NFT Utility

Building a Community is key for web3 services. The holders of the Friendly Horses are granted with 10x more voting weight in the DAO structure.

1. **Earning protocol revenue**: Users who stake their Friendly Horses to earn fees generated by the protocol
2. **Governance** (Under Development): Users who stake their Friendly Horses to participate in the governance and vote on key proposals

### Governance

The voting power is distributed between NFT holders and Swapy holders as follows:

![Voting power distribution](/files/RM3XKsadv0APejL3A2xs)