# Tokenomics & Economic Model

#### EDUA Token Overview

The **EDUA token** is the foundation of the **EduCoin Academy** ecosystem, acting as a medium for **transactions, incentives, and governance**. It enables **Learn-to-Earn rewards, course payments, staking, and NFT-based certifications**, ensuring a seamless and efficient interaction between **learners, educators, and investors**.

#### Token Allocation & Distribution

The total supply of **EDUA tokens is fixed at 4,000,000,000**, ensuring a sustainable economic model that supports long-term growth. Tokens are strategically allocated to **reward users, provide staking incentives, secure liquidity, fund development, and foster partnerships**. To maintain stability and align with the platform’s long-term vision, a significant portion of the **EDUA token supply allocated to the team, investors, and treasury** is subject to **lock-up and vesting schedules**.

**52%: Learn & Earn Rewards** – Designed to incentivize learners and educators, these tokens fuel the **Learn-to-Earn** mechanism and are distributed progressively as users engage with educational content and complete platform activities.

**20%: Staking Rewards** – Encourages long-term participation and engagement through staking incentives. These tokens are unlocked over time to sustain staking rewards while maintaining a balanced supply. **A lock-up period of 3 to 6 months** ensures stability.

**5.5%: Fundraising Allocation** – Reserved for **public token sales** across multiple IDO rounds, funding early development and adoption. These tokens are **locked for 6 months**, with a gradual release of **20% after 6 months, 30% after 9 months, and 50% after 12 months** to prevent immediate sell-offs.

**2.5%: Liquidity Pool** – Ensures **liquidity on decentralized exchanges (DEXs) and centralized exchanges (CEXs)**, facilitating seamless transactions. These tokens are made available as needed for market-making and price stability.

**10%: Team & Development** – Supports core team operations, platform innovation, and long-term scalability. To demonstrate long-term commitment, these tokens are **locked for 12 months**, followed by a structured **vesting schedule of 20% after 12 months, 30% after 15 months, and 50% after 18 months**.

**10%: Treasury & Partnerships** – Reserved for strategic growth, collaborations, and ecosystem sustainability. **50% of these tokens are locked for 1 year**, with a **gradual release over the next 12 months** to support business expansion and key partnerships.

<figure><img src="https://1713605762-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FqH1f2hn49E3taYWVHglh%2Fuploads%2FhoWOr6D9K6bNHhb7ifJU%2FEducoin%20Academy%20(1).png?alt=media&#x26;token=55b230f4-744e-488f-9e28-132a69637272" alt=""><figcaption><p>Token Repartition</p></figcaption></figure>

#### Supply Limitation & Burning Mechanism

To maintain **token value and control inflation**, a **conditional burn mechanism** is integrated into the **EDUA smart contracts on Polygon**. This system is automatically activated once **10% of the total supply** is in circulation.

Once this threshold is reached, **10% of every EDUA transaction on the platform is permanently burned**, gradually reducing the circulating supply. This **deflationary model** applies to **certifications, governance transactions, premium services, and other platform utilities**, ensuring a dynamic balance between supply and demand.

This mechanism **scales with adoption**, stabilizing the token economy while reinforcing EDUA’s long-term value. Additionally, **governance mechanisms allow for adjustments to burn thresholds and rates**, ensuring an adaptive and transparent monetary policy that evolves with the platform’s growth.

#### Staking & Governance Mechanisms

EduCoin Academy’s **dynamic staking model** allows users to lock their **EDUA tokens** in exchange for **rewards and governance rights**. Stakers contribute to platform security while gaining **voting power**, influencing key decisions such as **protocol updates, funding allocations, and ecosystem developments**. This **decentralized governance structure** ensures that the platform evolves based on community interests rather than centralized control.

Unlike traditional staking, **EduCoin Academy introduces a progressive staking system** where rewards are directly tied to **user engagement and contribution**. The **staking model operates on three levels**, encouraging active participation:

* **Level 1 (10% APY)** – For users who have completed **0 to 20 pieces of content** (courses, quizzes, or certifications).
* **Level 2 (15% APY)** – Unlocked upon completing **21 to 50 pieces of content**.
* **Level 3 (20% APY)** – For those surpassing **50+ completed content items**, maximizing their staking rewards.

This **activity-based staking model** ensures that **long-term contributors receive greater incentives** than passive holders, reinforcing continuous engagement within the platform. By rewarding **active learners and content creators**, this system strengthens EduCoin Academy’s **Learn-to-Earn economy** while promoting **long-term platform adoption and sustainability**.

EduCoin Academy’s **tokenomics** are designed for **long-term balance**, integrating **Learn-to-Earn rewards, dynamic staking opportunities, and decentralized governance**. This model ensures that the EDUA token remains **a self-sustaining asset**, aligning the interests of **users, educators, and investors** while maintaining controlled supply mechanisms and sustainable growth.
