> For the complete documentation index, see [llms.txt](https://whitepaper.kap.gg/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.kap.gg/token/tokenomics.md).

# Tokenomics

## Utility

The $KAP token has proven utility, actively being utilized across thousands of wallets in gaming environments across web3. As a publisher token, $KAP occupies a privileged position at the top of the gaming food chain, enabling holders to benefit from a plethora of opportunities from partnered portfolio and internal studio games.

The $KAP token is used for:

1. <mark style="color:yellow;">**Burning**</mark> to create nodes for certain games in our portfolio during certain time periods, where those nodes produce supply of the game's token. [Learn more here](/technology/nodes.md).
2. <mark style="color:yellow;">**Staking**</mark> to earn partner tokens and points rewards, as well as in-game bonuses for certain games across our portfolio. [Stake here](https://kap.gg/staking).&#x20;
3. <mark style="color:yellow;">**Purchasing**</mark> in-game assets and making discounted payments in certain games across our portfolio.&#x20;
4. <mark style="color:yellow;">**Voting**</mark> on platform referendums and social governance features that affect certain classes of tokenholders. [Vote here](https://vote.kap.gg/).&#x20;

In essence, the $KAP token may allow you to acquire more tokens from other affiliated portfolio games via node creation, staking rewards, and voting incentives.

## Supply & Distribution

The $KAP token is <mark style="color:yellow;">**deflationary**</mark>, with only 1,000,000,000 initially minted, and a supply that will decrease over time as the tokens are burned to create nodes for games within our publishing portfolio. The token generation event date was October 5, 2022.

The initial token distribution at time of mint was:

<table><thead><tr><th>Category</th><th width="202">%</th><th>Unlock Terms</th></tr></thead><tbody><tr><td>Public Liquidity</td><td>5.00%</td><td>No lock terms</td></tr><tr><td>Contributors &#x26; Investors</td><td>35.23%</td><td>12 month cliff, 12 month unlock</td></tr><tr><td>Advisors</td><td>0.42%</td><td>12 month cliff, 12 month unlock</td></tr><tr><td>Reward Incentives</td><td>10.00%</td><td>48 month unlock</td></tr><tr><td>Ecosystem </td><td>49.35%</td><td>48 month unlock</td></tr></tbody></table>

{% hint style="danger" %}
The KAP token has not been offered as a security, and contributors should have zero expectation of profit, irrespective of the plans and ideations outlined in this conceptual paper. Furthermore, public claim functions and liquidity pools are not be available to any participant with a US, Cuba, Iran, North Korea, or Syria IP address. See [Disclaimer](/appendix/disclaimers-and-disclosures.md) for more info.
{% endhint %}