> For the complete documentation index, see [llms.txt](https://darenft.gitbook.io/darenfts-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://darenft.gitbook.io/darenfts-whitepaper/mechanics/tokenomics-dao.md).

# Tokenomics (DAO)

$DNFT Token Utility

![DareNFT's Tokenomics (DAO)](https://469645820-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHbZz40MWkv7s3JvZEcRP%2Fuploads%2FOiErz3HMVmNFCY7bbVib%2FTokenomics.JPG?alt=media\&token=a1a5dc7c-3620-4a7b-a5e9-39e66bb2917f)

This is DareNFT's Tokenomics where we have compacted our business model into three layers. 

In the 3rd layer, there could be many kind of NFT based applications for example blockchain games, NFT based content platforms or even our bootstrap product DarePlay . 

This is built on our second layer in a similar way of the Amazon Marketplace built on Amazon Web Service and one of our examples is the DarePlay website for the gaming market. 

The second layer will create our NFT 2.0 as a service where we will compact all our NFT features into a package to give a whole service to access to the 1st layer DareNFT protocol. 

For the first layer when an NFT 2.0 transaction fee occurs it will go into the **DAO treasury**. 

This will be split into *5 Main Parts*:

Firstly, it will ***distribute dividends*** to the users who are staking our token 

Secondly, it will be used to reward the people who provided the ***liquidity to the DEX***. 

Thirdly, the person who charged the NFT 2.0 transaction fee will get a ***discount*** if they are staking our token.

Fourthly it will be used to ***burn a token***** quarterly** which will reduce the supply of our token and increase the price. 

Lastly it’s ***reserved*** for the future use of our DAO.

This is DareNFT's three layer business model.