> For the complete documentation index, see [llms.txt](https://tifotrade.gitbook.io/tifo/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://tifotrade.gitbook.io/tifo/how-it-works/usd-tifo-tokenomics/the-minting-principle-of-usdtifo.md).

# The minting principle of $TIFO

$TIFO issuance mechanism 

The first equation is the "Quadratic Issue Equation", and the second equation is the "Repo Destruction Equation" : 

**Increase: epochMint = (TWAP – IV) \* supply \* ICV \* Discount** 

**Recycle: epochBurn = (TWAP – IV) \* supply \* DCV \* Discount**

\
TWAP: Time Weighted Average Price\
IV: $TIFO support price\
Supply: The risk-free value of the Treasury\
ICV: Inflation Coefficient Value\
DCV: Deflation Coefficient Value\
Discount: The Discount can be set.

The quadratic issue equation determines the number of $TIFO tokens that will be minted in the next epoch, while the repo destruction equation determines the number of $TIFO tokens that will be destroyed.

The TWAP is the average price of $TIFO over a certain time period, and the support price is the minimum price that the protocol will maintain for $TIFO.

The inflation and deflation coefficient values, ICV and DCV respectively, adjust the amount of $TIFO that will be minted or burned in each epoch based on the current price of $TIFO.

The Discount can be set to adjust the amount of $TIFO that will be minted or burned in each epoch.

The coinage principle of $TIFO tokens is designed to maintain price stability and protect the value of the token.

## Allocation mechanism for $TIFO

Users can use mainstream crypto assets such as BTC, ETH, USDT, and $TIFO-USDT LP assets to mint $TIFO in the form of bonds to the treasury contract to receive a bond discount and more $TIFO than if they bought in the market. TIFO, the $TIFO minted will be divided into 3 parts:

1. 10% into DAO;
2. the treasury contract will calculate the $TIFO available to the subscriber based on the current $TIFO price and the bond discount and will be released to the subscriber within 5 days;
3. The remaining $TIFO will go into the reserve pool and will be used to reward users who staked $TIFO.

<figure><img src="https://90707133-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZ2mERcbqFhKVoz0XOOe6%2Fuploads%2FuFNsIaCYvyyKjXZ3bZTO%2F11.png?alt=media&amp;token=a4a83bb7-9b19-4877-adca-c1d6d30465bd" alt=""><figcaption></figcaption></figure>