> For the complete documentation index, see [llms.txt](https://hydron.gitbook.io/home/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hydron.gitbook.io/home/tokenomics.md).

# Tokenomics

## How does the HYDRON token supply work?

There is not a fixed total value of HYDRON tokens, however the token supply is limited due to the tokenomics behind the Hydron protocol. Only 777 tokens were initially minted upon creation and the only way new tokens are minted is through dividend payouts. The token amount that is paid out on each dividend is decreased by 3% every 30 days. Because of the mathematics, the token supply will never increase past 7,777,777.77 repeating. This can be seen in the following graph:

![20 Year Graph of Total Supply Growth](/files/neMHaZFDCBRqgcRiEf2T)

## How does HYDRON maintain value?

Since the dividend payouts are decreasing forever by the Dividend Reduction Rate (DDR), the HYDRON token will become scarcer as time goes on. This principle is used in the well-known cryptocurrency titan Bitcoin. A phenomenon known as "halving" happens on the Bitcoin network every 4 years. This reduces the amount paid out to miners by half making Bitcoin more scarce and resulting in a increase in value. Below is the graph of the dividend payout amount for HYDRON over a 20 year period.

{% hint style="info" %}
For more information on Bitcoin's tokenomics, go to their [community wiki](https://en.bitcoin.it/wiki/Help:FAQ#Where_does_the_value_of_Bitcoin_stem_from.3F_What_backs_up_Bitcoin.3F).
{% endhint %}

![20 Year Graph of Dividend Amount Decrease](/files/ucvEvcpz3b2zLHXLqTdA)


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://hydron.gitbook.io/home/tokenomics.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.