# $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. --- # 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://openfi.gitbook.io/openfi/protocol-overview/usdopen-tokenomics.md?ask= ``` 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.