# Kwenta Token
The Kwenta token (KWENTA) will be used to incentivize coordination and growth within the Kwenta DAO. It will have two primary functions: (a) **Staking** and (b) **Governance**.
* Optimism token address: [0x920Cf626a271321C151D027030D5d08aF699456b](https://optimistic.etherscan.io/address/0x920Cf626a271321C151D027030D5d08aF699456b)
{% hint style="info" %}
Further reading: [KIP-4: Kwenta Tokenomics](https://github.com/Kwenta/KIPs/blob/master/content/kips/kip-4.md)
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## Supply
KWENTA will have an initial **supply of 313,373.** Weekly emissions will start at 14,463.37 $KWENTA the first week and drop to around 200 $KWENTA (1% APY) at the end of four years. Resulting in a total supply at the end of four years of 1,009,409.43.
* 30% - Synthetix Stakers (Complete)
* 5% - Early Synth Traders (Complete)
* 5% - Investment
* 25% - Community Growth Fund
* 15% - Core Contributors
* 20% - Kwenta Treasury
## Inflation and Fee Allocation:
20% of inflation is routed to the treasury, 20% of inflation is dedicated towards trading rewards (15% is earmarked for future trading incentives by the treasury) and 60% of inflation is routed to stakers.
This will enable Kwenta to sustainably fund DAO roles while enabling the community to use the entire token supply as needed.
Inflation is minted once per week by a keeper; however, this mint functionality can be called by anyone in the event the Kwenta DAO keeper is unable to mint rewards. The reward for minting is 1 KWENTA per mint.
## Vesting Mechanism
KWENTA printed via inflation will undergo a 1-year lock-up period. The lock-up mechanism will begin with an 90% fee for vesting KWENTA early which will decay linearly. If tokens are vested early, the percentage of tokens that are still applicable to the fee will be sent back to the treasury. After one year, the fee would reach 0% and no tokens would be burned when vesting KWENTA.
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Ex. If you have 1 $KWENTA, and its vesting, and you vest immediately, you’ll be left with 0.1 $KWENTA, if you wait a year and you vest, you get 1 $KWENTA
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