# Token Economic Mechanism

**$HIVE** is the core token of the **AlphaHive ecosystem**, designed with an **ultra-deflationary model, staking rewards, anti-whale policies, and a fair launch mechanism** to ensure long-term value growth and sustainable returns for holders.

**🔹 1. Token Distribution Model**

<figure><img src="https://1237909346-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwpT4NKrmXAqjkTm2vFvk%2Fuploads%2FJZ8oGdbrJNtpblAuZTDP%2Fimage.png?alt=media&#x26;token=fd557da7-af7b-4c5f-9451-9a8706e3f6c4" alt=""><figcaption></figcaption></figure>

**🔹 Key Highlights**:

* **90% of $HIVE is burned, ensuring long-term scarcity and value appreciation.**
* **Liquidity is secured to ensure smooth trading and market resilience.**
* **Smart incentive models drive ecosystem growth and reward long-term supporters.**

### **🔥 2. Token Economic Model**&#x20;

#### &#x20;**2.1 Deflationary Model (Value Capture)**

AlphaHive employs multiple burning mechanisms to ensure **long-term deflation** and enhance $HIVE value growth as the ecosystem expands.

* **Transaction Fee Burn** 💎:
  * **50% of all DApp transaction fees** (e.g., copy trading, strategy subscriptions) are **automatically used to buy back and burn $HIVE**, reducing the circulating supply.
* **NFT Economy Burn** 🎨:
  * All NFT purchases require payment in $HIVE, which is then **100% burned**, increasing demand and reducing supply.
* **Excess Profit Buyback** 📈:
  * **20% of net quarterly profits** are used for public buybacks and burning, ensuring long-term deflation and increasing scarcity as the platform grows.

#### **💵 2.2 Transaction Tax (Fully Converted to USDT)**

AlphaHive applies a **3% transaction tax** (on buys, sells, and liquidity removals), which is **100% converted to USDT** and allocated as follows:

<figure><img src="https://1237909346-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwpT4NKrmXAqjkTm2vFvk%2Fuploads%2FIgjYYmBUfAyWrww78meS%2Fimage.png?alt=media&#x26;token=9e35afa0-e838-4856-a11f-b4dab07bbea3" alt=""><figcaption></figcaption></figure>

**🚨 2.3 Anti-Whale and Anti-Dumping Mechanism**

To prevent short-term speculation and whale market manipulation, AlphaHive has implemented a **strict anti-dumping policy** to protect long-term holders and ensure market health.

<figure><img src="https://1237909346-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FwpT4NKrmXAqjkTm2vFvk%2Fuploads%2FcsUuSpufJnfhiOeynNPn%2Fimage.png?alt=media&#x26;token=2ca05d93-4f35-4f6d-91d6-da1a43d4be0b" alt=""><figcaption></figcaption></figure>

**🔹 Key Benefits**:\
✅ **Holding for 3+ days avoids additional penalties**, encouraging long-term investment.\
✅ **Short-term dumping is taxed an extra 4%, reducing market volatility.**\
✅ **Whale transactions above 0.1% of supply are taxed an extra 10% to prevent manipulation.**

🏆 **🔥 90% of tokens permanently burned, creating extreme scarcity!**\
🏆 **🔥 Strong deflation + periodic buybacks, ensuring continuous value appreciation!**\
🏆 **🔥 Staking rewards + transaction tax incentives, rewarding long-term holders!**
