> For the complete documentation index, see [llms.txt](https://degen-capital-1.gitbook.io/degen-capital-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics.md).

# Tokenomics

Fees in, pools out, supply down. Where every $DEFUND goes.

Two things bring money into this game: **trading $DEFUND**, and **spending it**. A 3% fee on every buy and sell funds the first. Both are split the moment they arrive, and every share has somewhere to be.

![Two sources, four destinations](https://3552858075-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FGyJ2fCw8mpbx6YAYcG8z%2Fuploads%2FwCKrl109vKltBRCd3mxE%2Ffig-19-tokenomics.svg?alt=media)

| Read next                                                                                                                   | About                                             |
| --------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------- |
| [The Split](https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics/the-split)                       | Two sources, four destinations, nothing left over |
| [The Burn](https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics/the-burn)                         | Why playing makes the supply smaller              |
| [The Vault](https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics/the-vault)                       | The only discretionary money, and its two exits   |
| [The Release Schedule](https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics/the-release-schedule) | Why a round does not spend its own fees           |

## The short version

| Rule                              | What it is                                      |
| --------------------------------- | ----------------------------------------------- |
| Fee on every $DEFUND buy and sell | **3%**                                          |
| That fee                          | **50%** to the prize pool, **50%** to the vault |
| In-game spending                  | **50%** to the prize pool, **50%** burned       |
| Fee release                       | **20%** per round, across **5** rounds          |
| Supply direction                  | **Down.** Nothing in the game creates $DEFUND   |

{% hint style="success" %}
Nothing in the game mints $DEFUND. Your office produces points, and points can never be turned back into tokens. So the only thing play does to the supply is make it smaller.
{% endhint %}

{% hint style="info" %}
$DEFUND is a game token. Nothing here is an offer, and none of it is investment advice.
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://degen-capital-1.gitbook.io/degen-capital-docs/degen-capital/tokenomics.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.