> For the complete documentation index, see [llms.txt](https://umbrella-1.gitbook.io/umbrella/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://umbrella-1.gitbook.io/umbrella/tokenomic-and-economic-theory.md).

# Tokenomic & Economic Theory

## Monetary and Fiscal Policy 

* Inflationary Supply
* Automated network token reward distribution 
* Methods of release: 
  * Initial Token Generation Event - Public/Private Sales 
  * Inflation for stakers in the PoS system 
  * Community rewards, partnerships, and airdrops 
  * Allocation for incentivized testnet participants

## UMBRA Utility

The token has 4 main purposes:

1. Secure the network through Proof of Stake 
2. Pay network fees to nodes operating Umbrella 
3. Incentivize users who are providing value to the ecosystem
4. Used to vote on proposals in the UmbrellaDAO.