> For the complete documentation index, see [llms.txt](https://carol-8.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://carol-8.gitbook.io/documentation/economic-model/token-distribution-model-and-inflation-policy.md).

# Token Distribution Model and Inflation Policy

## **Token Distribution Model**

As the CAROL token has an unlimited emission and no pre-mines or allocations for the team or funds, the primary focus is on the following components:

**Bonding:** Users can bond their funds for 30 days and receive + 30% in CAROL tokens on top of the initial bonding amount.

**Liquidity Staking:** After bonding, users can participate in liquidity staking. The maximum profit from liquidity staking is capped at 150%.

**Decentralized Governance:** All liquidity is held in the management contract and cannot be used for purposes other than those defined by the community through voting.

**Inflation Policy**

**Unlimited Emission:** The CAROL token has an unlimited emission, which continually incentivizes participation in bonding and liquidity provision.

**Control Through Bonding and Staking:** Inflation is controlled through unique bonding and staking mechanisms, providing additional stability and resilience to the token.

**Community Control:** The inflation policy can be further regulated by the community through voting, enabling adaptation to changing economic conditions.

**Conclusion**

The token distribution model and inflation policy for the CAROL token are designed to ensure long-term sustainability and active community participation. The combined mechanisms of bonding and staking, along with decentralized governance, create a dynamic economic model capable of adapting and responding to the changing needs and interests of ecosystem participants.


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