# 5.5.2 Token distribution

The token distribution model for DGT network is designed with a comprehensive strategy, aimed at immediate issuance and strategic allocation of tokens, to ensure the sustainability and growth of the network.

Token Issuance: At the inception of the network, all tokens, amounting to _TOTAL\_SUPPLY_, are issued immediately. They are reserved in a specific system wallet, named EMISSION. Technically, this operation mirrors the token creation function utilized in Bitcoin's model, where all tokens are minted at the outset.

* **Initial Allocation**: A smaller fraction of tokens is designated for the consortium responsible for the network's governance. The of tokens is strategically divided into two segments:

o  ![](https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2FBcpHRAdA9LKobYQTQami%2Fimage.png?alt=media\&token=f8a6b2aa-e13a-4d59-9593-e0bd86358188): A percentage of the total supply (for instance, 20%) is immediately allocated to a consortium (corporate) account. This portion serves various purposes beneficial to the network, such as supporting development efforts, funding public goals, and enabling token conversions to establish bridges to external networks like Ethereum.

o  ![](https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2FsnwvSio4tWGkpcjJ9gJO%2Fimage.png?alt=media\&token=e5ecb61e-bc28-4892-8fb7-e797b01d6d44) : Most of tokens (for instance, 80%) is reserved to incentivize and support network nodes over time. Network nodes form the backbone of the DGT network, and these tokens help foster a robust and sustainable node economy.

<figure><img src="https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2FmVh57C58ba784yfcX3ke%2Fimage_2023-11-14_160146555.png?alt=media&#x26;token=588694f5-a130-4a0f-947c-204ba2830ae3" alt=""><figcaption></figcaption></figure>

* **Network Activation Delay** ![](https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2F0xCua4Xxc8d23UPtsgKe%2Fimage.png?alt=media\&token=aa2cb0a1-205b-4c14-9292-11c44443186e): It's worth noting that the network does not start operating immediately post token issuance. There is a time delay, referred to as ![](https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2FYCqOk9rh69nFKjgcB6zo%2Fimage.png?alt=media\&token=0e7dbf2b-de41-421b-bdac-92756c55b678), during which no tokens are distributed. This delay allows for necessary preparations and arrangements before the network goes live.
* **Documentation and Transparency**: Specific parameters pertaining to the token distribution model are meticulously documented in a dedicated White Paper. This ensures transparency and allows stakeholders to verify details both at the protocol level and via user-friendly interfaces such as Network Explorer.

The DGT token distribution model emphasizes immediate issuance, strategic allocation, and gradual distribution. It meticulously blends immediate utility and long-term network sustainability, thus serving as a robust foundation for the DGT ecosystem.

<figure><img src="https://3210145376-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FSvanFNAf6Jf8kwvqcdRQ%2Fuploads%2F7fqxTdhpeT01YoFjaNfk%2Fimage_2023-11-14_160345520.png?alt=media&#x26;token=d64e82cd-2338-4cbe-8a2d-1b4db9725c3e" alt=""><figcaption><p><em>Figure 80 Sample of DGT Token Distribution</em></p></figcaption></figure>

