# NRG Tokenomics

Energy has a total supply cap of 5,000,000,000 Tokens.

Once the 5bn token cap is hit, the platform will turn into a purely deflationary PVP system, where users compete against each other whilst they Watch2Earn. Once this cap is reached, no more tokens will ever be minted.

### NRG Token Burn Mechanisms 

The NRG Token and NFTs provide multiple ways of decreasing supply while maintaining a gamified experience for all users. A few examples are:

1. NFT Minting (93% burnt)
2. NFT Repairing (96.5% burnt)
3. Upgrading Characteristics (96.5% burnt)
4. Breeding NFTs (Burn TBC)
5. NFT Trading (3.75% burnt)

{% hint style="success" %}
Burn percentages refer to the NRG Token. Any XCADs used in transactions for the NRG App will be simply taken off the market.
{% endhint %}

## How do the Rewards Change?

NFT earnings are hugely based on the level of reputation an NFT has. The higher the reputation level of your NERD NFT, the higher your earnings will be per video. 

Rewards are currently fixed per level and rarity. However, users can benefit from increased rewards by levelling up their nerd and buying XP boosters.

## Sale Tax

A new 10% sales tax on selling the Energy token is in effect, which encourages users to spend their Energy within the ecosystem instead of selling. From it, 50% will be burned and 50% added to LP to create a thicker pool.


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