# Tokenomics

PAN is the protocol token. PAN adopts supply schedule similar to that of Bitcoin. Initially, every block emits **25 PAN**. Currently, Cronos produces a block per 5.5 sec. It is approximately 15,709 blocks per day. We use **16,000 blocks per day** and **365 days per year** as our token emission schedule. **The block rewards will halve every year (5,840,000 blocks)**. To maintain the protocol, the halving will stop after the seventh halving. **After the seventh halving, the inflation of the PAN token is 0.39% per year.** The number of halving will be determined by the community after the PAN token is fully decentralized. The PAN token holders participate governance process, have fee discount, and share protocol profits.

## Token Release Schedule

The initial block rewards are 25 PAN. After the first year (5,840,000 blocks), the first halving occurs. The block rewards will be 12.5 PAN after the first halving. After the seventh halving, the block rewards are 0.195 PAN. The block rewards figure is shown below:

<figure><img src="https://346016153-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfgjwI6js88hU3zZ8qmMS%2Fuploads%2Fi7TX3iJbJ34tYdJUiW6b%2FBlockRewards.png?alt=media&#x26;token=c857d6a9-26c4-4ade-bdb2-aa7d8eb9ba91" alt=""><figcaption></figcaption></figure>

<figure><img src="https://346016153-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfgjwI6js88hU3zZ8qmMS%2Fuploads%2Fl4vdwbiGhsg2zENHNTnT%2FTotalSupply.png?alt=media&#x26;token=d2337467-010a-452d-9f61-68aba4beec51" alt=""><figcaption></figcaption></figure>

## Token Distribution

**The PAN token launches fairly. No initial distribution to team, investors, pre-sales, and public sales.** The distribution of PAN token is show below:

<figure><img src="https://346016153-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfgjwI6js88hU3zZ8qmMS%2Fuploads%2FB4F9HhbFMDMZQbevzHb5%2FTokenDistribution.png?alt=media&#x26;token=ebfdfe7d-e5e1-4f2a-9450-f8aad9f1050a" alt=""><figcaption></figcaption></figure>

## Deflationary Mechanisms

* Protocol has an option to burn a certain PAN token for every ptCRO and ytCRO burn (eatPAN). This option is default off and can be turned-on through governance proposals.


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