# Token Economy Design

The token economy of the DCPC platform is the foundation of the growth of the DCPC network and the virtuous cycle of the token ecosystem. The design of DCPC's token economy has been centered on the following main agendas.

#### Retention of Minimum Economic Scale to Ensure Sustainability of Token Economy

A fundamental reason why many blockchain projects struggle to get off the ground is the difficulty of achieving a healthy token ecosystem, i.e., a minimum economic scale that ensures the sustainability of the project's self-sustaining operations. Many cryptocurrency projects promise revenue sharing and rewards to project participants, but without the underlying transaction volume to generate revenue through the circulation of tokens, revenue sharing and reward payments become a moot point. And even if revenue is generated, a self-sustaining economic structure can be established without additional external support when a significant portion of the generated token revenue is recirculated into a reward pool for network participants and distributed as rewards for contributing to the growth of the network.

#### Mechanisms for stabilizing the supply and demand of DCPCs

As the ecosystem grows with the growth of the Dotcube Protocol and the influx of users into the DCPC network, it is inevitable that the DCPC platform will control the supply and demand of DCPC to ensure the stability of the entire ecosystem. The oversupply or undersupply of DCPC that may occur due to changes in the scale of the ecosystem as the platform grows may not only cause serious price volatility of the token, but also become a major factor that may harm the stability of the ecosystem. Therefore, policies and mechanisms are needed to monitor the liquidity and price fluctuations of DCPC supplied within the DCPC network, and supply and redeem accordingly. For example, an expanded compensation scheme for early participants should be combined with compensation controls for participants in the event of excessive network proliferation.

**Monitoring and control of DCPC's proprietary holdings**

The reward for long-term holders of DCPC is based on capital gains from holding DCPC as the network grows. While such long-term holdings by early participants can stabilize the price of DCPC and contribute to the growth of the network by increasing the value of their holdings, excessive rewards for such passive long-term holdings can reduce the incentive for other participants to actively contribute to the growth of the network. Therefore, mechanisms are needed to prevent excessive concentration of token ownership, and rewards for active contributions to network growth should be progressively larger than rewards for passive holding.

Based on the recognition of the above problems, the DCPC platform has designed the DCPC Token Economy as follows.
