# Implementation of the NIBI Tokenomics
Nibiru's Inflation Module implements the emmissions for the Nibiru (NIBI) token. These emissions go to stakers, the Nibiru Foundation treasury, and the community reserve.
# Introduction
The Nibiru blockchain's main, native digital asset is called NIBI. As of Nibiru v1.3.0, NIBI tokens are only ever minted by the Inflation Module, which is a drop-in replacement for the Mint Module from the Cosmos-SDK. We use a custom implementation in order to properly implement the Nibiru token economics and release schedule.
# Total Supply
NIBI tokens are not automatically burnt by this module, and the fully diluted supply is capped at 1.5 billion NIBI if there are no "buyback and burn" events.
# Module Parameters
The NibiruChain/tokenomics GitHub repo (opens new window) shows how the coefficients for the following module parameters are computed.
| Parameter | Description |
|---|---|
inflation_enabled | The parameter that enables inflation and halts increasing the skipped_epochs. |
polynomial_factors | Factors of a polynomial in decreasing order. These numbers are used to calculate polynomial inflation. |
inflation_distribution | Distribution of percentages describing where to send newly minted tokens. |
epochs_per_period | The number of epochs that must pass before a new period is created. |
periods_per_year | The number of periods that occur in a year. |
max_period | The maximum number of periods that have inflation being paid off. After this period, inflation will be disabled. |
has_inflation_started | Indicates if inflation has started. It's set to false at the start, and stays at true when we toggle inflation on. It's used to track the number of skipped epochs. |
The token emissions are derived from a target rate of increase in each epoch. To represent these values precisely onchain in discrete chunks, we use a polynomial since a small-order polynomial can be used to approximate almost any smooth, montonic curve.
You can query these parameters on mainnet using the Nibiru CLI.
# Community Reserve
The term "community reserve" in the Nibiru ecosystem refers to the "Community Pool" module account, which is designated to hold funds for use in community-driven projects. These funds are managed through a governance process, allowing stakeholders to propose and vote on their allocation.
The reserve receives a portion of newly minted tokens, intended to support initiatives that may include development grants, educational efforts, or other activities that contribute to the network. This setup provides a mechanism for the community to decide on resource allocation to projects aligned with its interests and goals.