# 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>

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