> ## Documentation Index
> Fetch the complete documentation index at: https://io-migration.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# IO Tokenomics

> Tokenomics defines the structure and mechanics of a token, covering aspects like distribution, supply-demand dynamics, utility, incentives, governance, and value capture. This document provides transparency into the tokenomics of io.net.

## Key Principles

### Fixed Maximum Supply:

The total supply of \$IO is capped at 800 million coins.

* 500 million \$IO will be distributed at launch.
* The remaining 300 million \$IO will be emitted as hourly rewards to Suppliers and their Stakers over time.

### Hourly Rewards:

Rewards are distributed hourly to Suppliers and their Stakers over 20 years following a disinflationary model:

* Starts at 8% annual inflation in year 1.
* Decreases by 1.02% monthly (/\~12% per year) until the cap of 800 million \$IO is reached.

Charts detail the emission rates, annual inflation, and the distribution of emitted vs. remaining coins.

![](https://mintcdn.com/io-migration/Bv_oYBZcsAQogZqq/images/docs/777cd8d368567611d7dad3c4c27bf2a8614bd1eee4bd23464ad1c23524732f40-IO_tokenomics_yearly_rate.png?fit=max\&auto=format\&n=Bv_oYBZcsAQogZqq\&q=85\&s=a2058fe8ba9a666883adee5f5a804736)

**Figure 1. Emission rate as a function of total emissions pool.**

![](https://mintcdn.com/io-migration/IwUWwB8xp-N74Lcf/images/docs/26bf4781f288588bfb84f3f41a9162c8f535d7915a4553f4c9413a4ae3ed180c-IO_tokenomics_yearly_inflation_rate.png?fit=max\&auto=format\&n=IwUWwB8xp-N74Lcf\&q=85\&s=969b98483ae7153f5c32f5791d2c01e0)

**Figure 2 Year Inflation Rate**

![](https://mintcdn.com/io-migration/_sHqUZNdV0heX8eR/images/docs/14e8dd9eacc9b4dd4ea5824ec04affb9e56c5e25cc46428550dfc486edfc5414-IO_tokenomics_versus_chart.png?fit=max\&auto=format\&n=_sHqUZNdV0heX8eR\&q=85\&s=b7317e7763305bd1e7cc07eaf98f9be8)

**Figure 3: Coins already emitted by year versus remaining Coins to be emitted.**

### Burn Mechanism:

\$IO employs a programmatic coin burn system:

* Revenues from the IOG Network are used to purchase and burn \$IO.
* The burn amount is adjusted dynamically based on \$IO's price, reducing supply and creating deflationary pressure.

***

## Revenue Streams and Fee Structure

io.net generates revenue through fees charged to both Users (Renters) and Suppliers:

**GPU Renter Fees**

* Reservation Fee:
  * 0.25% of the total compute reservation cost is added to the Renter's cost.

* Payment Fee:

  * 2% fee for payments made in 100% USDC.
  * No fees for payments made in 100% \$IO.

**GPU Supplier Fees**

* Reservation Fee:
  * 0.25% fee on the total reservation cost, charged to the Supplier upon payment for compute.

* Payment Fee:

  * 2% fee for payments in 100% USDC.
  * No fees for payments in 100% \$IO.

***

## Summary of Tokenomics Features

* **Fixed Supply:** Capped at 800 million \$IO.
* **Hourly Rewards:** Emitted to Suppliers and Stakers over 20 years with decreasing inflation.
* **Burn Mechanism:** Reduces supply via programmatic burns funded by network revenue.

These mechanisms ensure a balanced and sustainable ecosystem for \$IO.


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