# Tokenomics

## Token Usage

DEV is a utility token that is an essential part of Dev Protocol. Users stake their tokens in OSS projects to indicate which projects they believe are valuable. Active participants of the protocol get rewarded in minted DEV tokens for their participation.  

[Etherscan - DEV token](https://etherscan.io/token/0x5cAf454Ba92e6F2c929DF14667Ee360eD9fD5b26)

## Staking Rewards

The total reward for a per block called `rewards` is determined as follows.

{% hint style="info" %}
`rewards` is defined by [Policy Contract](https://docs.devprotocol.xyz/dev-protocol/protocol/background#policy-contract). Policy Contract is updated by on-chain governance. The content described here follows the specifications defined in [0xa220A9F9eD7c434F0bF2a45d86188FE22026F1d4](https://etherscan.io/address/0xa220a9f9ed7c434f0bf2a45d86188fe22026f1d4).
{% endhint %}

* More lockups, less rewards.
* More assets, more rewards.

As lockups increase, rewards decrease, and inflation rates decrease. As assets increase, rewards increase, and inflation rates increase. The deflationary trend makes it more rapidly by lockup increases. Ideally, an increase in assets should be accompanied by lockups, so an increase in assets should be a factor in increasing the inflation rate. But as lockups increase, the less impact the increase in assets will have. The maximum value is 0.00012 per block and an asset. This value can be changed through governance proposals. 

The following formula illustrates the basic concept

$$
Rewards = Max\*(1-StakingRatio)^((12-(StakingRatio\*10))/2+1)
$$

The number of reward vs. staking ratio will as follows curve:

![](/files/-MIPRro_uGsjhDF2pfZU)


---

# 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://dev-protocol.gitbook.io/dev-protocol/protocol/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.