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# Tokenomics

<figure>
  <img src="/pendle-docs/imgs/ProtocolMechanics/pendle_distribution.png" alt="PENDLE distribution" />
  <figcaption>PENDLE distribution as of Oct-2022</figcaption>
</figure>

As of September 2024, all team and investor tokens have fully vested. Any increase to circulating supply will be contributed by incentives and ecosystem building. 

## Weekly Emission
Weekly emission as of Sept-2024 is 216,076 with a 1.1% decrease each week until April 2026. At that point, it will switch to a terminal inflation rate of 2% per annum for incentives. 

As the industry matures, governance may propose changes based on the evolution of ecosystem best practices.

<figure>
  <img src="/pendle-docs/imgs/ProtocolMechanics/weekly_emission.png" alt="Weekly Emission" />
  <figcaption>Weekly Emission</figcaption>
</figure>

## Circulating Supply
**Circulating Supply** refers to all freely circulating Pendle token which does NOT include:

1. Pendle staked in [sPENDLE contract](https://etherscan.io/address/0x999999999991E178D52Cd95AFd4b00d066664144)
2. Pendle in [vePENDLE contract](https://etherscan.io/address/0x4f30a9d41b80ecc5b94306ab4364951ae3170210) (winding down — users should migrate to sPENDLE).
3. Pendle in [Ecosystem Fund address](https://etherscan.io/address/0x399be606db281a054e359eb709df9f21e922ec9a).
4. Pendle in [Governance Multi-signature address](https://etherscan.io/address/0x8119ec16f0573b7dac7c0cb94eb504fb32456ee1).
5. Pendle in [Team Multi-signature address](https://etherscan.io/address/0x918cf6b16d1426b5aa0edf0492ced1aa89f9659a).

The total supply of Pendle tokens at any point in time is the **Circulating Supply** plus Pendle in the 5 addresses above.

<figure>
  <img src="/pendle-docs/imgs/ProtocolMechanics/pendle_supply.png" alt="PENDLE supply" />
  <figcaption>PENDLE Total supply</figcaption>
</figure>