> For the complete documentation index, see [llms.txt](https://dgtnetwork.gitbook.io/dgt-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dgtnetwork.gitbook.io/dgt-docs/5.-exploring-tokenomics/5.5-token-supply-model/5.5.3-supply-protocol.md).
# 5.5.3 Supply Protocol
The modeling journey commences with establishing the **Token Supply**. As part of the simulation, the initially reserved amount of  tokens is gradually distributed to the nodes participating in the maintenance of the network (Lucki\_Nodes) through the function defined in 
The subsequent step is estimating token consumption, thereby reducing any surplus. The Token Supply integrates with the profile  (reminiscent of the reward allocated to bitcoin miners) and , representing the token distribution at its zenith. The formulation is:
Here:
The DGT Supply Protocol ensures that early-bird nodes don't hoard a disproportionate token share. This safeguards equity and ensures that as transaction volumes, node counts, and token value escalate, the reward per node wanes.
* **Dissecting** : Within our framework,  prescribes the tempo of token distribution. Formulated using an inverted sigmoid function, it offers a seamless transition between stages. By analogy, while Bitcoin's rewards see periodic halving, the DEC Token (DGT) network embraces a more gradual decrement. The reward decrement adheres to this inverse sigmoid function:
* **Token Distribution Dynamics**: Token distribution, within this framework, is a measured venture that strategically depletes the initial token reserve, , over time. The temporal trajectory is orchestrated by parameters like , which contour the distribution curve and govern the token volume during each event. Here, modulates the curve's steepness, thus influencing token distribution pacing. Simultaneously, prolongs the distribution curve's span, ensuring sustainable token dispensation.  then serves as a scaling factor, determining the token volume at each distribution event, thereby shaping a balanced and sustainable token economy.