> ## Documentation Index
> Fetch the complete documentation index at: https://docs.notareum.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics

# Tokenomics

Notareum's tokenomics are designed to align incentives across users, validators, integrators, and long-term holders. The supply of `$NOTA` is dynamic: it adjusts to protocol usage through goal-oriented minting and multi-faceted burning. The result is a token economy that rewards honest participation and penalises malicious behaviour.

## Supply dynamics

```mermaid theme={"system"}
flowchart TB
    subgraph Inflows
        Mint[KPI-driven minting]
        Rewards[Validator rewards]
        Grants[Ecosystem grants]
    end

    subgraph Outflows
        FeeBurn[Fee burns]
        SlashBurn[Slashing burns]
        DisputeBurn[Failed dispute bonds]
        Lock[veNOTA locks]
    end

    Mint --> Circulating((Circulating))
    Rewards --> Circulating
    Grants --> Circulating
    Circulating --> FeeBurn
    Circulating --> SlashBurn
    Circulating --> DisputeBurn
    Circulating --> Lock
```

## Minting

NOTA is minted under two conditions:

1. **KPI-driven emissions**: the protocol mints additional supply when specific key performance indicators are achieved (resource registrations, verification throughput, cross-chain coverage). This ties supply growth to real protocol adoption.
2. **Integration grants**: governance-approved grants to wallets, exchanges, and dApps that integrate the SDK. Grants can reach up to 200,000 NOTA for major integrations, paid out on usage milestones.

All minting requires a governance proposal to pass. There is no privileged minter address.

## Burning

NOTA is burned through four mechanisms:

1. **Fee burns**: a percentage of every verification fee is burned, creating deflationary pressure proportional to protocol usage.
2. **Slashing burns**: when a validator is slashed, a portion of the slashed stake is burned. The remainder flows to disputers and the treasury.
3. **Failed dispute burns**: bonds posted for disputes that are deemed frivolous are burned, discouraging griefing.
4. **Alias registration burns**: a portion of alias fees is burned, linking the value of aliases to overall token scarcity.

The balance between minting and burning is tuned by governance to support long-term price stability while preserving incentive alignment.

## Fee distribution

When a user pays a verification fee, the fee is distributed as follows:

```mermaid theme={"system"}
pie title Verification fee split
    "Validators" : 55
    "Integrators" : 15
    "Treasury" : 20
    "Burn" : 10
```

The integrator share (15%) goes to whoever referred the verification, typically the wallet or dApp that initiated the request. Years 1 and 2 see an elevated integrator share (15%); from year 3 onwards it settles at 10%.

## veNOTA mechanics

Lockers receive voting power proportional to their lock duration. A 4-year lock grants maximum voting power per NOTA; shorter locks scale linearly down. This rewards long-term alignment and discourages speculators from gaining outsized governance influence.

See [veNOTA](venota.md) for the full lock mechanics.

## Related pages

* [\$NOTA Token](nota-token.md)
* [Distribution](distribution.md)
* [veNOTA](venota.md)
* [Fee Model](../protocol/fee-model.md)