> For the complete documentation index, see [llms.txt](https://jeet-donalds.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jeet-donalds.gitbook.io/whitepaper/usddca-no-official-token-yet/tokenomics.md).

# Tokenomics

Donalds Cost Average

## Supply Cap and Distribution <a href="#supply-cap-and-distribution" id="supply-cap-and-distribution"></a>

Jeet Donalds is capped at 420 million $DCA tokens, with distribution driven by a geometric sequence:

$$
S = \sum\_{i=0}^{\infty} R\_0 \cdot N\_h \cdot \left(\frac{1}{2}\right)^i = 420,!000,!000
$$

Where:

* ( S ): Total $DCA supply
* ( R0 ): Initial block reward
* ( Nh ): Number of blocks per halving cycle
* ( i ): Halving cycle index

Our protocol guarantees a strict 420 million $DCA cap on total minted tokens, including burned amounts, ensuring total supply never exceeds the limit.

## Burn Mechanism and Referrals <a href="#burn-mechanism-and-referrals" id="burn-mechanism-and-referrals"></a>

Jeet Donalds fuels a deflationary system and dynamic network growth through:

* Burn Mechanic: 50% of all in-game purchases are permanently burned, reducing total supply over time.
* Referral Rewards: 2.5% of block rewards are allocated to referrers players, driving expansion and community engagement.

## Halving Schedule <a href="#halving-schedule" id="halving-schedule"></a>

The halving mechanism ensures limited token supply, fostering scarcity and long-term value stability. The block reward starts at 50 $DCA and halves every 1,296,000 blocks, approximately every 30 days with an average block time of 2 seconds on Ancient8 network.

#### Block Emission Formula <a href="#block-emission-formula" id="block-emission-formula"></a>

$$
R\_b(n) = R\_0 \cdot \left(\frac{1}{2}\right)^{\left\lfloor \frac{n}{N\_h} \right\rfloor}
$$

Where:

* ( R0 = 50 ): Initial emission rate ($DCA per block)
* ( n ): Current block number
* ( Nh = 1,296,000 ): Halving interval in blocks

## Proof-of-Work (PoW) <a href="#proof-of-work-pow" id="proof-of-work-pow"></a>

Players power up their hashpower by deploying menu (miner). Mining rewards are distributed every block, proportionally to each player’s share of the network hashrate.

The $DCA reward for player ( i ) per block is:&#x20;

$$
R\_i = \frac{H\_i}{h} \cdot R\_b(n)
$$

Where:

* ( hi ): Hashpower of player ( i )
* ( H ): Total network hashpower
* ( Rb(n) ): $DCA emission rate per block