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

# Tokenomics

At the core of the OORT ecosystem is its utility token—fueling payments, staking, and governance. Thoughtfully allocated, it ensures that value creation and decision-making remain decentralized and community-driven. The token allocation is shown below.

<figure><img src="/files/pMPJVJ6nB0yZOjZlYy7D" alt=""><figcaption><p>OORT Token Allocation</p></figcaption></figure>

## Different Roles in the OORT Ecosystem

### Node Providers (Miners)&#x20;

Node providers, traditionally named as “miners”, refer to the computing device owners who contribute their computing and storage resources to the OORT Network.&#x20;

### Token Holders&#x20;

Token holders refer to people who process OORT’s utility tokens.&#x20;

### Developers&#x20;

Developers refer to people who develop smart contracts and decentralized applications (dApps) in the OORT ecosystem and those that test our open-sourced codes on [Github](https://github.com/oort-tech) for the betterment of OORT.

## The Token Utilities

### Service Payment&#x20;

Users can always pay fiat currency (via credit card) for different services in the OORT ecosystem. However, a discount is usually given to the users who use OORT utility tokens for service payments.

### Staking&#x20;

OORT offers two ways for token holders to stake tokens: Stake tokens with staking pools. One can delegate tokens to node providers via OORT bonding pools. Node providers will use staked tokens as mining collateral. As a result, you will receive a share of mining rewards from the provider. Become a node provider. Stake tokens as mining collateral.

### Governance&#x20;

[Governance](https://www.oortfoundation.org/governance) is one of the primary functions of the OORT ecosystem. Users submit proposals and vote on topics like network parameters, slashing mechanisms, and service fees.&#x20;

A proposal must be submitted with a certain amount of deposit, which is fully refundable once the proposal passes. If the proposal fails to pass, deposits will be distributed to the mining rewards pool for node providers.

## Token Deflation&#x20;

The OORT Foundation will use up to 30% profit to regularly buy back and burn its utility tokens to reduce the total token supply and thus gradually and continuously increase token value.&#x20;

* Token burning frequency: every three month&#x20;
* Token burning cap: 40% of the total token supply

## Mining Tokenomics

<table data-view="cards"><thead><tr><th></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Edge Node Providers</strong></td><td>By running OORT's edge node and providing storage, compute capacity, or bandwidth, one can help these applications to scale easily while earning mining rewards.</td><td>Learn more at <a href="https://docs.oortech.com/oort-den/den-edge-nodes/edge-node-tokenomics">https://docs.oortech.com/oort-den/den-edge-nodes/edge-node-tokenomics</a></td></tr><tr><td><strong>Eco Partners</strong></td><td>Eco partners manufacture and distribute different types of edge nodes for the OORT Decentralized Edge Network. </td><td>Learn more about Eco Partner Economics at <a href="https://docs.oortech.com/oort-den/eco-partners/eco-partner-tokenomics">https://docs.oortech.com/oort-den/eco-partners/eco-partner-tokenomics</a></td></tr></tbody></table>

### Updated tokenomics

[Click to learn more about updated tokenomics.](https://www.oortfoundation.org/news-updates/updated-oort-tokenomics-enhancing-decentralization-and-sustainability)

TL;DR: The 400 million tokens reserved for [OORT Edge](https://www.oortech.com/edge) mining will be released in stages, with each stage releasing half the amount of the previous one. The first stage will release 200 million tokens, during which each OORT Edge node will produce 2.875 [$OORT](https://x.com/search?q=%24OORT\&src=cashtag_click) per day. In subsequent stages, the daily output per node will be halved (e.g., 1.4375 [$OORT](https://x.com/search?q=%24OORT\&src=cashtag_click) in the second stage).