# Token Utility

**DGMA** is a **utility token with a fixed supply** that powers the daGama ecosystem. Within the daGama ecosystem, our token is used to pay for services, gain access to additional features, and receive rewards.

A cornerstone of the DGMA token's utility is the **Post & Earn** mechanism. The ecosystem employs a **role-based model** that encourages user engagement and valuable content creation by rewarding users with DGMA tokens for their contributions.

For example, u*sers can earn* DGMA *tokens for creating high-quality reviews and recommendations, as well as for discovering new places and events.*

### Business utility:

* Business Profile
* Promotional Tools
* Loyalty Program
* Retail Tools

Acting as the main token acquirers, businesses harness DaGama's tools to produce real-world profits and share a fraction of those proceeds.&#x20;

**The Business Panel** and **Promotional Tools** sections provide an in-depth exploration of the business-DaGama interaction.

<figure><img src="/files/DvZJBPhICpQ7CAZMn1Ut" alt=""><figcaption></figcaption></figure>

### Users utility:

* Profile Customization
* Additional Features: comprehensive travel planning tools, memory map, and more.
* Discounted In-App Services
* Payments for Third-Party Services
* Crowdfunding & donations for exclusive content, experiences and secret locations
* [Membership Card (NFT)](/architecture/blockchain/membership-card-nft-id.md)

A key aspect of our economic model is based on the idea that users can become useful members of **the daGama DAO community** and earn tokens instead of having to buy them. Businesses monetize users in return for their input. More details about the rewards system are available below.

### Continuous Reward Pool

We employ an infinite pool mechanism for rewards. The token distribution economic model takes into account user contributions to the ecosystem and their reputation.

* The Reward Pool is segmented into **epochs**.
* Each containing a predetermined number of rewards.&#x20;
* Each epoch spans TWO weeks, concluding with a token distribution via **loot boxes.**

The reward size and acquisition likelihood for each era are thus dictated by the prevailing token balance in the prize pool and the rarity of the loot box.

### **The Impact of NFTs on Reward Distribution**

Holding a **Membership Card** has a direct impact on how many rewards a user gets when tokens are distributed at the end of the epoch.

NFT holders enjoy **enhanced discounts** and **bonuses on in-app products**, along with increased [**staking**](/architecture/blockchain/staking.md) APR.

### Token Burn Mechanism

Upon purchasing premium accounts, tokens will be transferred to **daGama's treasury**. From this treasury, tokens will be burned on a monthly basis.

In addition to burning tokens from premium account purchases, the project will also burn excess tokens from the rewards pool and drops. This occurs when the number of participants is insufficient to effectively distribute rewards at the end of the epoch.

### Economic Model (PoP)

PoP-Attestations are the core value unit. DGMA flows across:

1. Edge infrastructure
2. Validation/consensus
3. Publication/indexing
4. Product/API access
5. On-chain artifacts (NFTs, claims)

Staking and reputation protect the network, while the treasury funds development, security, subsidies, and ecosystem growth. Mass adoption is enabled through subscriptions, subsidies, and fiat-pegged pricing models.


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