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

# Tokenomics

10B Native Tokens will be minted but not put into circulation. Our circulating supply will be initially limited to 2-8M.

We will only increase the circulating supply of Native Tokens as assets (farmland) are acquired, by a number of tokens proportional to the purchase price of the asset. Initially, we will strive to maintain $10M in the treasury. Optimal goal is $100M in the Native Token treasury.

Thus, additional tokens enter the circulating supply upon each acquisition.

## Example 1

Assume 100M tokens are already in circulation. Then LANDAO acquires a new farm property for $20M. In this scenario, we would allow an additional $20M of tokens to be sold to replenish the treasury. This will increase the circulating supply of tokens by an amount proportional to the token value as follows:

<table><thead><tr><th>Token Value</th><th width="198.66666666666669">Number of New Tokens Sold</th><th>Total Circulating Supply</th></tr></thead><tbody><tr><td>$1</td><td>20M</td><td>120M</td></tr><tr><td>$2</td><td>10M</td><td>110M</td></tr><tr><td>$5</td><td>4M</td><td>104M</td></tr></tbody></table>

## Example 2

Assume 90M tokens have been sold at $1 per token ($90M in Treasury). Then, an asset is acquired for $30M.&#x20;

In this example, after the acquisition, there would be 40M tokens available to be sold if the value is still $1/token. This is because the LANDAO Treasury target is $100M. Since we only had $90M, there are still 10M tokens available on the market. Once the $30M property is acquired, we allow another 30M tokens to circulate, resulting in 40M available tokens.

### Deflation / token burning

The DAO will burn un-circulating Native Tokens upon the acquisition of every asset. The number of tokens to be burnt will be based on the purchase price. If the purchase price was $20M, then 20M tokens will be burnt, regardless of the market value of the token. The burning of tokens is capped at 5B.