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

# $OPEN Tokenomics

## The coinage principle of $OPEN tokens

The first equation is the "Quadratic Issue Equation", and the second equation is the "Repo Destruction Equation." : 

Increase: epochMint = (TWAP – IV) \* supply \* ICV \* Discount 

Recycle: epochBurn = (TWAP – IV) \* supply \* DCV \* Discount

Where:\
TWAP: Time Weighted Average Price\
IV: $OPEN support price\
Supply: The risk-free value of the Treasury\
ICV: Inflation Coefficient Value\
DCV: Deflation Coefficient Value\
Discount: The Discount can be set.

The quadratic issue equation determines the number of $OPEN tokens that will be minted in the next epoch, while the repo destruction equation determines the number of $OPEN tokens that will be destroyed.

The TWAP is the average price of $OPEN over a certain time period, and the support price is the minimum price that the protocol will maintain for $OPEN.

The inflation and deflation coefficient values, ICV and DCV respectively, adjust the amount of $OPEN that will be minted or burned in each epoch based on the current price of $OPEN.

The Discount can be set to adjust the amount of $OPEN that will be minted or burned in each epoch.

The coinage principle of $OPEN tokens is designed to maintain price stability and protect the value of the token.