# Tokenomics

### **Utility and Value Proposition**

The KSGEMS token forms the backbone of the ecosystem, offering utility and value through staking, trading, and profit-sharing mechanisms.

* **Staking Mechanism:**\
  Token holders can stake their KSGEMS tokens to earn rewards in the form of points. For every token staked, holders receive **1 point per token per day**. Points accumulated by staking are a direct measure of an investor’s engagement in the ecosystem and determine their share of profits.
* **Rewards System:**\
  The points earned through staking translate into proportional profit shares from gemstone auctions. This system incentivizes long-term participation while ensuring that rewards are fairly distributed among active participants.

### **Supply and Distribution**

* **Total Token Supply:**\
  The total supply of KSGEMS tokens is fixed at **35,000,000**, ensuring scarcity and value preservation.
* **Distribution Model:**\
  Tokens are strategically allocated to promote sustainable growth and reward ecosystem contributors:
  * **Development Reserves:** For ongoing platform development, technical upgrades, and innovation.
  * **Team Incentives:** To reward the core team for their contributions and retain top talent.
  * **Fair Launch:** Token is launched fairly on exchanges, no presale, public, private.
  * **Community Rewards:** For staking rewards, referral programs, and other incentives that enhance community engagement.
* **Utility:** Staking rewards, profit-sharing, and trading opportunities.
* **Fixed Supply:** 35,000,000 tokens to ensure scarcity.
* **Distribution:** Balanced allocation for development, incentives, and community rewards.
* **Auction Mechanism:** Live bidding with reserve pricing, ensuring fair valuation and rewarding stakers.

Detailed Tokenomics can be accessed [here](https://docs.google.com/spreadsheets/d/12-RkxVfwYAaMvzkBP3-bOM9CPM4upgWCXceyKAPM_yw/edit?usp=drivesdk).
