> For the complete documentation index, see [llms.txt](https://docs.degym.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.degym.net/dao/dgym-tokenomics/pre-seed.md).
# Distribution Phases
The DeGym project is embarking on a phased approach to raise funds and distribute tokens, ensuring fair market valuation and rewarding early investors. This document outlines the strategy for the pre-seed, private sale, and public sale phases, including token distribution, pricing, vesting periods, and the future adjustment of token prices.
## Token Generation Event
At the `$DGYM` contract deployment, `1.000.000.000(1 billion)` will be minted (ERC-20) and allocated according to [Allocation](/dao/dgym-tokenomics/usddgym-tokenomics.md).
***
## 🌱 Pre-Seed Phase
* **Token Allocation:** 3% of the total token initial supply (300,000,000 DGYM)
* **Vesting Period:** To ensure commitment and gradual release of tokens
* **Unsold Tokens:** Any unsold tokens from the pre-seed phase will be burned forever to maintain scarcity and increase the value of circulating tokens
* **Objective:** Validate market interest, raise initial funds, and set a baseline for token value
### Vesting Schedule:
* **End Phase Event:** 2 months
* **Monthly Vesting:** Remaining tokens vested over 18 months
### Key Points:
* **Fair Initial Pricing:** Tokens will be priced to attract early supporters while reflecting their future potential value.
* **Burning Unsold Tokens:** Any tokens not sold during the pre-seed phase will be burned, reducing the total initial supply and potentially increasing the value of remaining tokens.
***
## 🐋 Private-Sale Phase
* **Token Allocation:** 7% of the total token initial supply (700,000,000 DGYM)
* **Price Adjustment:** The price per token will be 30% higher than the final price from the pre-seed phase
* **Objective:** Raise significant funds for project development, marketing, and operational expenses
### Price Calculation:
* **Final Pre-Seed Price:** Determined based on the total market cap accumulated during the pre-seed phase
* **Private Sale Price:** 30% higher than the final pre-seed price to reward early investors and reflect the project's progress and increased value
### Vesting Schedule:
* **End Phase Event:** Cliff of 3 months
* **Monthly Vesting:** Remaining tokens vested over 24 months
***
## 🌐 Public Sale Phase
* **Token Allocation:** 30% of the total token initial supply (3,000,000,000 DGYM)
* **Objective:** Raise significant funds for further project development, marketing, community building, and operational expense
* **Price Adjustment:** The price per token will be 30% higher than the final price from the private sale phase
### Price Calculation
* **Private Sale Unsold Tokens:** All unsold tokens from the Private Sale phase will be permanently burned
* **Public Sale Price:** 30% higher than the final private sale price to reflect the project's ongoing progress and market conditions
### Vesting Schedule:
* **End Phase Event:** 100% unlocked immediately (No Cliff)
* **Monthly Vesting:** No remaining for vesting
***
## Summary
1. **Pre-Seed Phase:**
* Allocate 3% of tokens
* Vesting period with monthly releases
* Burn unsold tokens
2. **Private Sale Phase:**
* Allocate 7% of tokens
* Price 30% higher than pre-seed final price
3. **Public Sale Phase:**
* Allocate 30% of tokens
* Price 30% higher than private sale price
4. **Token Burn:**
* Burn all unsold tokens from the pre-seed phase
### Token Burn Mechanism
* **Pre-Seed Unsold Tokens**: All unsold tokens from the pre-seed phase will be burned
* **Purpose:** To create scarcity, potentially increasing the value of the remaining tokens
### Market Cap Adjustment
* The price per token will be adjusted based on the market cap accumulated during each sale phase. This ensures a fair valuation and aligns the token price with the project's progress and market demand.
This phased approach ensures fair distribution, rewards early investors, and aligns token prices with market demand and project progress.
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