# Tokens

The **Real** blockchain powers a decentralized ecosystem designed to tokenize real-world assets (RWAs) for small and medium enterprises (SMEs). At the core of this ecosystem is the **$ASSET** token, the native cryptocurrency of the Real network. This page provides an overview of the **$ASSET** token, its initial supply, inflation schedule, and role in ensuring the network’s growth and sustainability.

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### The **$ASSET** Token

The **$ASSET** token is the native utility token of the Real blockchain, a Layer 1 (L1) network built with the Cosmos SDK. It serves multiple purposes within the ecosystem, from facilitating transactions to incentivizing network participation through staking and governance.Key Functions of **$ASSET**

* **Transaction Fees:** **$ASSET** is used to pay for transaction fees on the Real blockchain, including smart contract execution, RWA tokenization, and asset transfers.
* **Staking:** Token holders can stake **$ASSET** to secure the network, participate in consensus, and earn rewards. Learn more in our [Consensus Guide](https://docs.real.finance/consensus).
* **Governance:** **$ASSET** holders can vote on on-chain governance proposals, influencing the network’s future, such as parameter adjustments or protocol upgrades.
* **Incentives:** **$ASSET** rewards validators and delegators, ensuring the network remains secure and decentralized.

### Token Supply and Inflation

The **$ASSET** token’s supply and inflation schedule are carefully designed to balance network security, incentivize participation, and ensure long-term sustainability.

#### Initial Supply

* The **$ASSET** token launched with an **initial supply of 1,000,000,000 tokens**. This supply was distributed across various allocations, including:
  * **Ecosystem Development:** 30% (300,000,000 **$ASSET**) for funding dApps, partnerships, and RWA tokenization initiatives.
  * **Team and Advisors:** 20% (200,000,000 **$ASSET**) with a 2-year vesting schedule to align long-term interests.
  * **Community and Staking Rewards:** 25% (250,000,000 **$ASSET**) to incentivize early adopters, validators, and delegators.
  * **Public and Private Sales:** 15% (150,000,000 **$ASSET**) to raise funds for development.
  * **Liquidity and Marketing:** 10% (100,000,000 **$ASSET**) to support exchange listings and promotional activities.

#### Inflation Schedule

To incentivize staking and validator participation, **$ASSET** tokens are minted annually through inflation, which is distributed as block rewards. The inflation rate decreases over time to promote scarcity and value appreciation.

* **First-Year Inflation:** In the first year, the inflation rate is set at **5%**, adding **52,500,000 $ASSET tokens** to the circulating supply. This brings the total supply to 1,052,500,000 **$ASSET** by the end of year one.
* **Annual Decrease:** The inflation rate decreases annually to ensure a sustainable token economy:
  * **Year 2:** 4.5% inflation (47,250,000 **$ASSET**, based on the year 1 supply of 1,052,500,000).
  * **Year 3:** 4% inflation (43,990,000 **$ASSET**, based on the year 2 supply of 1,099,750,000).
  * **Year 4:** 3.5% inflation (39,491,250 **$ASSET**, based on the year 3 supply of 1,143,740,000).
  * **Year 5 and Beyond:** The rate continues to decrease by 0.5% each year until it stabilizes at a minimal rate (e.g., 1%) to maintain network security without excessive dilution.

#### Total Supply Over Time

The decreasing inflation rate ensures that the total supply of **$ASSET** grows at a diminishing rate, promoting long-term value for token holders while incentivizing early participation. Below is a projection of the total supply over the first five years:

| Stage        | Allocation (%) | Tokens (MM) | Cliff (months) | Vesting (months) | Monthly Release (%) |
| ------------ | -------------- | ----------- | -------------- | ---------------- | ------------------- |
| Pre-Seed     | 2.0%           | 20          | 9              | 36               | 2.64%               |
| Seed Round   | 8.5%           | 85          | 6              | 30               | 3.17%               |
| Private Sale | 5.5%           | 55          | 3              | 24               | 3.96%               |
| Public/IDO   | 1.0%           | 10          | 6              | —                | 15.00%              |
| Treasury     | 53.5%          | 535         | —              | 36               | 2.78%               |
| Team         | 15.0%          | 150         | —              | 36               | 2.78%               |
| Advisors     | 4.5%           | 45          | —              | 24               | 4.17%               |
| Liquidity    | 10.0%          | 100         | 12             | —                | 5.83%               |
| **Total**    | 100%           | 1,000       | —              | —                | —                   |

#### Inflation Distribution

Inflated **$ASSET** tokens are distributed as follows:

* **Staking Rewards:** 70% of new tokens go to validators and delegators, proportional to their staked **$ASSET**.
* **Ecosystem Fund:** 20% supports ecosystem growth, such as grants for dApps and RWA tokenization projects.
* **Community Incentives:** 10% funds airdrops, marketing campaigns, and user rewards to drive adoption.

### Role in Real’s Ecosystem

The **$ASSET** token is integral to Real’s mission of tokenizing RWAs for SMEs, as it powers the economic incentives that keep the network secure, decentralized, and scalable.

#### Supporting RWA Tokenization

* SMEs use $ASSET to pay for tokenization fees, ensuring that the process of converting assets (e.g., real estate, inventory) into digital tokens is seamless and cost-effective.
* Transaction fees from RWA tokenization and trading are redistributed to validators and delegators, aligning economic incentives with network usage.

#### Ensuring Long-Term Sustainability

* **Decreasing Inflation:** The annually decreasing inflation rate prevents excessive token dilution, preserving value for long-term holders while still incentivizing early participation.
* **Staking Incentives:** High initial inflation (5% in year one) encourages staking, securing the network during its early stages. As the network matures, lower inflation shifts the focus to transaction fees as the primary reward mechanism.
* **Governance Empowerment:** $ASSET holders can propose and vote on changes to the inflation schedule, ensuring the community has control over the token’s economic policy.

### How to Get $ASSET Tokens

1. **Purchase on Exchanges:** $ASSET tokens are available on supported exchanges. Check our [Exchange Partners page](https://www.real.finance/exchanges) for a list.
2. **Stake and Earn:** Stake $ASSET tokens to earn rewards. See our [Consensus Guide](https://docs.real.finance/consensus) for staking instructions.
3. **Participate in Airdrops:** Join community events or airdrops to receive $ASSET tokens. Follow us on X for updates.

### Token Explorer

Track $ASSET token transactions, supply, and staking activity on the Real Block Explorer: [explorer.real.finance](https://explorer.real.finance).

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### Need Help?

If you have questions about the $ASSET token, its supply, or inflation, reach out to our team:

* Email: <team@real.finance>
* X:@[RealFinOfficial](https://x.com/RealFinOfficial)
* Telegram: [t.me/RealFinanceRWA](https://t.me/RealFinanceRWA)

The $ASSET token is the backbone of the Real ecosystem, driving the tokenization of real-world assets and ensuring a secure, decentralized future for SMEs and investors alike.


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