> ## Documentation Index
> Fetch the complete documentation index at: https://docs.accumulate.supply/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics

> Convert protocol activity into Bitcoin accumulation and supply reduction

\$ACCU is the native token of Accumulate. Token mechanics are designed to convert protocol activity into Bitcoin accumulation and supply reduction.

## Supply Model

<CardGroup cols={2}>
  <Card title="Fixed Initial Supply" icon="coins">
    \$ACCU is deployed with a fixed initial supply determined at launch.
  </Card>

  <Card title="Deflationary Only" icon="fire">
    There is no minting mechanism. Supply can only decrease through burns.
  </Card>
</CardGroup>

## Trading Fee

<Card title="10% on All Trades" icon="percent" color="#f97316">
  A **10 percent fee** is applied on all \$ACCU buys and sells.

  The fee structure is fixed and does not change based on market conditions.
</Card>

## Fee Distribution

Collected fees are routed automatically according to fixed rules:

<Steps>
  <Step title="6% → Bitcoin Treasury" icon="bitcoin">
    The largest portion goes directly to accumulating Bitcoin for the permanent
    treasury.
  </Step>

  <Step title="2% → Buyback and Burn" icon="fire">
    \$ACCU is purchased from the market and permanently burned, reducing
    circulating supply.
  </Step>

  <Step title="2% → Team and Operations" icon="users">
    Allocated to team compensation and operational costs necessary for protocol
    maintenance.
  </Step>
</Steps>

<Note>
  Fee routing is automatic and enforced at the contract level. No manual
  intervention is required or possible.
</Note>

***

## Supply Allocation

<Note>Supply allocation details will be published before token launch.</Note>

| Category         | Allocation |
| ---------------- | ---------- |
| **Total Supply** | TBD        |
| Public Liquidity | TBD        |
| Ecosystem        | TBD        |
| Treasury         | TBD        |
| Team             | TBD        |
| Advisors         | TBD        |
| Other            | TBD        |

<Info>
  All allocations will be disclosed with full transparency, including vesting
  schedules where applicable.
</Info>

***

## Key Mechanics Summary

<AccordionGroup>
  <Accordion title="How Trading Drives Accumulation" icon="chart-line">
    Every trade generates fees. 60% of those fees are immediately routed to
    purchase Bitcoin for the treasury. This creates a direct connection between
    protocol usage and Bitcoin accumulation.
  </Accordion>

  <Accordion title="How Supply Decreases" icon="arrow-trend-down">
    20% of all trading fees are used to buy back \$ACCU from the market and burn
    it. As trading volume increases, more tokens are permanently removed from
    circulation.
  </Accordion>

  <Accordion title="Why Fees Are Fixed" icon="lock">
    Fixed fees eliminate discretion and manipulation. The protocol cannot adjust
    fees to favor certain conditions or actors. Everyone pays the same rate,
    always.
  </Accordion>

  <Accordion title="What Backs $ACCU" icon="circle-question">
    Nothing. \$ACCU is not redeemable for treasury Bitcoin. It represents
    participation in the accumulation system, not a claim on treasury assets.
  </Accordion>
</AccordionGroup>

***

## What This Means for Participants

<Card title="Understand the Model" icon="lightbulb">
  \$ACCU is not designed for redemption, yield, or speculation on treasury value. It is a mechanism for participating in a fixed Bitcoin accumulation strategy.

  Trading activity drives both Bitcoin accumulation and supply reduction. That is the entire model.
</Card>

<CardGroup cols={2}>
  <Card title="How It Works" icon="gears" href="/protocol/how-it-works">
    Review the full protocol flow
  </Card>

  <Card title="Treasury Strategy" icon="vault" href="/protocol/treasury-and-bitcoin-strategy">
    See how Bitcoin is accumulated and held
  </Card>
</CardGroup>