# Check Token Tokenomics

The tokenomics of CHECK are crafted to ensure sustainable growth, fair distribution, and strong incentives for adoption. This page outlines the key parameters and distribution plans for the CHECK token.

## Token Supply and Management <a href="#token-supply-and-management" id="token-supply-and-management"></a>

* **Total Supply**: 100 billion CHECK tokens
* **Supply Type**: Fixed cap, deflationary
* **Initial Network**: Polygon (with bridging to other supported chains)

All tokens are minted at genesis on Polygon and represent the maximum supply; no inflation is programmed beyond this cap.

## Token Distribution <a href="#token-distribution" id="token-distribution"></a>

Effective token allocation and total transparency are vital to the success and longevity of any crypto project. The initial token distribution is carefully designed to support development, liquidity, and partnerships while prioritizing community governance and long-term engagement.

#### Distribution Breakdown <a href="#distribution-breakdown" id="distribution-breakdown"></a>

* **Circulating – 25%**: Distributed to the public through strategic sales, community airdrops, and rewards for early users. This allocation ensures broad accessibility, allowing the community to acquire and use the token, fostering decentralization and active engagement within the ecosystem.
* **Team – 20%**: Reserved for the founding team and developers, these tokens are subject to strict vesting schedules to align their incentives with the platform's long-term success. The vesting ensures that team members earn their tokens gradually as they continue contributing to the project, preventing immediate sell-offs.
* **DAO Treasury – 15%**: Managed by the community through the DAO, these funds are allocated for development grants, partnerships, bounties, and other community-driven initiatives. This treasury serves as a war chest to support ecosystem sustainability and growth, with spending decisions made collectively via governance.
* **Liquidity – 12.5%**: Dedicated to providing liquidity on both decentralized exchanges (e.g., Uniswap) and centralized exchanges (e.g., Binance). Strong liquidity pools ensure smooth trading with minimal price impact, supporting a healthy and stable market.
* **Marketing – 10%**: Allocated for marketing efforts, user acquisition, and partnerships. These funds support campaigns to raise awareness about the platform, referral programs, and collaborations with other projects to drive adoption and growth.
* **Reserves – 10%**: Held as a strategic buffer for unforeseen needs, additional liquidity, or future ecosystem funding. These funds may also be burned or reallocated based on governance decisions, ensuring flexibility in meeting long-term project goals.
* **Associates – 5%**: Allocated to contributors in the Paycheck Labs ASC Program who bring specialized skills—such as recruitment, social media influence, visual design, and other skill sets. These tokens are vested or time-locked to promote sustained involvement and long-term alignment with the program's goals.
* **Advisors – 2.5%**: Reserved for advisors who contribute specialized expertise, such as legal consultants, strategic planners, or industry experts. These allocations are also vested or time-locked to ensure sustained involvement and long-term commitment.

<figure><img src="https://2218800915-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5MDgMhLwU8MHZmcPHfHN%2Fuploads%2FZZrRPLCjmVbGyGinmlji%2FToken%20Distribution.png?alt=media&#x26;token=6c835612-7a91-40ea-841a-0a0c08f62bb8" alt=""><figcaption><p>Initial Distribution</p></figcaption></figure>

## Token Release Strategy <a href="#token-release-strategy" id="token-release-strategy"></a>

This token distribution model is carefully designed to balance community ownership, long-term contributor incentives, and the platform's evolving needs. At deployment, 25% of the supply is distributed directly to users through public channels, with additional tokens entering circulation gradually as team, associate, and advisor allocations unlock over time.

A substantial DAO Treasury and Reserve allocation ensure the platform has the flexibility to support ongoing initiatives, fund future opportunities, and address unforeseen challenges.

## Technical Implementation <a href="#technical-implementation" id="technical-implementation"></a>

CHECK is an ERC-20 token on Polygon. It implements the latest token standards for usability and security, including EIP-2612 permit (gasless approvals) for seamless integration in DeFi applications.

## On-Chain Transparency <a href="#on-chain-transparency" id="on-chain-transparency"></a>

Transparency is a core principle of the Checks Platform. All token allocations, locks, and vesting schedules are publicly verifiable on-chain. Any future modifications—such as reallocating reserves or adjusting reward mechanisms—require a governance proposal and majority vote from token holders.

In a landscape where some projects obscure token flows or retain discretionary control over large supply portions, such transparency is essential for trust, accountability, and true decentralization.

## Cross-Chain Integrity <a href="#cross-chain-integrity" id="cross-chain-integrity"></a>

The CHECK token contract is designed with a fixed supply, ensuring that the minting function is permanently disabled after genesis. On other chains, CHECK will exist either as wrapped versions or through official bridge contracts.

The protocol will leverage an omnichain token standard (e.g., LayerZero's OFT) to ensure that CHECK remains fungible across different chains, with the total supply consistently tracked across all deployments. This approach enables seamless cross-chain functionality while maintaining the integrity of the token's fixed supply.

## Supply Management and Deflationary Mechanisms <a href="#supply-management-and-deflationary-mechanisms" id="supply-management-and-deflationary-mechanisms"></a>

The protocol's smart contracts include mechanisms to implement the deflationary policy:

1. **Fee Collection and Burning**: Fees collected in various tokens can be routed to a fee collector contract which periodically executes a buy-and-burn of CHECK on the open market.
2. **Burn Reserve**: A portion of CHECK tokens in the community allocation might be set aside as a burn reserve, to be destroyed according to a schedule or upon reaching usage milestones.
3. **DAO-Controlled Adjustments**: The DAO can adjust the burn rate or allocate treasury funds to buy back tokens if it deems appropriate, subject to governance vote.

These measures ensure that as the platform's Total Value Locked (TVL) and transaction volume increase, the value is shared with token holders through reduced supply.

## Security and Audit <a href="#security-and-audit" id="security-and-audit"></a>

The Check Token contract was audited by [Hacken](https://hacken.io/audits/paycheck-labs/sca-paycheck-check-token-dec2024/), with zero vulnerabilities found—highlighting our ultimate commitment to security and best practices. The contract leverages OpenZeppelin libraries for ERC-20 implementation, ensuring robust and industry-standard code. By following these established frameworks and undergoing a rigorous audit, the contract minimizes risk and aligns with the highest standards in smart contract security. To reinforce this commitment, additional independent audits are planned for the future, ensuring ongoing protection for users as the platform evolves.
