# Tokenomics

SwarmPad employs a dual token system, featuring the native liquid token SWARM and its escrowed counterpart xSWARM, a non-transferable governance token. Both tokens serve as farming rewards to incentivize user participation and growth. A majority of the emissions are distributed in the form of xSWARM, which allows for greater control over the supply flow in the market. This strategy helps strike a balance between offering attractive incentives for early liquidity providers and ensuring the long-term health and sustainability of the protocol.

Protocol earnings, initially derived mainly from IDO fees, will be partially redistributed to xSWARM holders in the form of real yield. A portion of the earnings will also be allocated to buy back and burn programs, maintaining a consistent buying pressure on the SWARM token and contributing to its long-term value. Further details regarding SwarmPad's tokenomics will be released in the future, as the project continues to evolve and adapt to the ever-changing DeFi landscape.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://swarmpad.gitbook.io/swarmpad-docs/tokenomics.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
