# Tokenomics

## 1. Token Overview

* **Total Supply** 280m
* **Symbol** SUSHI
* **Chain** ETHEREUM
* **Address** [0x6B3595068778DD592e39A122f4f5a5cF09C90fE2](https://etherscan.io/token/0x6B3595068778DD592e39A122f4f5a5cF09C90fE2)

SUSHI was introduced in August 2020 as part of SushiSwap’s fork of Uniswap, aiming to align incentives for liquidity providers and community governance.

## 2. Supply & Issuance

1. **Initial Emission:**

At launch, SUSHI emission was set at 1,000 SUSHI per Ethereum block for the first ~2 weeks to bootstrap liquidity.
After this “fair launch” period, the block rewards were reduced to 100 SUSHI per block.

2. **Ongoing Inflation:**

Because block rewards continue indefinitely, SUSHI does not have a hard-capped maximum supply.
The protocol can adjust reward rates through governance if needed (e.g., to reduce inflation).

3. **Distribution of Rewards:**

A portion of newly minted SUSHI goes to liquidity providers in eligible SushiSwap liquidity pools.
Historically, 10% of newly minted tokens were allocated to a developer fund, though the allocation details have been adjusted over time via governance proposals.

## 3. Utility and Value Accrual

1. **Governance:**

SUSHI is primarily a governance token, enabling holders to vote on SushiSwap’s protocol proposals.
Important protocol changes—such as fees, reward schedules, and new product launches—are decided by SUSHI token holders.

2. **Staking (SushiBar / xSUSHI):**

SUSHI holders can stake tokens in the SushiBar contract to receive xSUSHI, representing a share of the SushiBar pool.
Protocol fees from trades (typically 0.05% of each swap) are used to buy back SUSHI on the open market. These purchased tokens are distributed to the xSUSHI pool, effectively creating a continuous buyback mechanism that benefits stakers.

3. **Liquidity Incentives:**

Liquidity providers in selected SushiSwap pools earn newly minted SUSHI tokens as an incentive to lock capital.
This mechanism helps ensure deep liquidity across various trading pairs on SushiSwap.

## 4. Governance & Protocol Control

1. **On-chain Proposals:** SUSHI holders can create or vote on proposals that affect emissions, fee parameters, or treasury allocations.

2. **Treasury & Dev Fund:** The SushiSwap treasury (funded partly through block rewards and partially through trading fees) is used to support continued ecosystem growth, grants, audits, and community initiatives.

## 5. Key Tokenomic Features

1. **Continuous, Controlled Inflation:**

No maximum supply; block rewards continue indefinitely.
Governance can adjust block rewards to manage inflation.

2. **Fee Buybacks to Stakers:**

A portion of trading fees (0.05% out of a typical 0.30% total swap fee) is diverted to buy and distribute SUSHI to xSUSHI holders.
Community-Centric Design:

SUSHI’s governance-first ethos aims to keep power in the hands of the community, rather than a small group of core developers or investors.

### In Summary

The SUSHI token lies at the heart of SushiSwap’s community-driven DEX model on Ethereum. It provides both governance rights and value accrual through staking rewards and protocol fee buybacks. Although SUSHI lacks a hard cap, its emission rate is subject to community governance, balancing liquidity incentives with inflation. By combining yield farming incentives, fee revenue sharing, and on-chain governance, SUSHI’s tokenomics aim to foster a sustainable and community-aligned ecosystem.