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

# Tokenomics

There's currently no hard cap on the supply of WEED tokens, making it kind of an inflationary token but we counter that. 

Community members often point to this as a cause for concern, and while the chefs certainly understand the wish for a hard cap, there's a big reason we don't expect to set one in the near future:

> WEED's primary function is to incentivize providing liquidity to the exchange. *Without block rewards, there would be much less incentive to provide liquidity (LP fees etc. would remain).*

**So what are the other ways WEED's supply is limited, to counter inflation?** 

## How WEED supply is reduced without a hard cap

The chefs aim to **make deflation higher than emission** by building deflationary mechanisms into Weedswap's products and doing manual burns and buybacks**.** The goal is for more WEED to leave circulation than the amount of WEED that's produced.

### Reducing block emissions 

By reducing the amount of WEED made per block, we also slow inflation.

## **Coffeeshop**

In the Coffeeshop section you can stake $WEED to earn other Tokens (Stable coins, Partner Tokens or new Tokens), the Fee used to enter the Coffeeshop pool will be auto burned!

### Deflationary mechanisms

Regular token burns (view burn address) are built into many of Weedswap's products (like a 10% burn of CAKE spent on lottery tickets), with more on the way. We also do manual burns with the Fees of the Farms & Pools.

Check the WEED Tokenomics page regularly for details on present and upcoming deflationary mechanisms.

### Lottery

* Lottery Ticket Fee for 1 ticket: 1 WEED which will be burned
* Single User Lottery Entry Limit: No overall limit, but only 50 can be bought at one time through the UI
* Paying for one ticket will give users a random 4 digit combination with each digit being between 1-14, for e.g. “1-9-3-2”

### **Did you Lock Tokens/Liquidity for the Team & Charity?**

Yes, We did lock the [Team/Salary Tokens for 2 Years](https://bscscan.com/tx/0xf73e4b334f0ecd8971009c0cae7897cc8af5769efb2469fe54fb8cf189be6e69) (25% release every 6 Months)

We did also lock the [Development/Marketing Tokens for 1 Year](https://bscscan.com/tx/0xde74de6332a74ce42b8ff539515acb0a7dfb064759924aa55265195e21592717) \[1% release every 4 days to work & grow with it]

[Liquidity was locked](https://bscscan.com/tx/0xd5c085d8f35f98c245d26d674e9bd43681355d3e90926010ae8fdd7e14f0087e) but most is even provided by the Community

[Charity Tokens Locked](https://bscscan.com/tx/0xf1c5f4f558b7c023fe54dd6cabb0012a3eddb95706b397d9f8732471b2a6ef14) for 1 Year \[1% release every 4 days to donate or collect for bigger campaigns]

### Manual Burns & Buybacks

We burn Weed Tokens which come from Farm Entry Fees %.

In order to increase that amount, we will also do regular buyback of the Tokens (we buy $WEED with other Tokens \[BUSD/BNB or others which we got from the other Farm % Fees]) in order to push the $WEED Price and burn the Token afterwards to reduce the circulating supply even more.