> ## Documentation Index
> Fetch the complete documentation index at: https://docs.thewolfshead.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Tokenomics & the Deflationary Loop

> Supply allocation and the four deflationary pressures on $WOLF

WOLF operates under a strict, non-inflationary token model backed by real cash flow and supply reductions. Genesis supply is hard-capped at **100,000,000 \$WOLF**.

## Token supply allocation

```mermaid theme={null}
pie showData
    "Initial DEX Liquidity (Uniswap v4)" : 40
    "Community Emission Reserve (esWOLF)" : 30
    "Ecosystem Treasury & Reserve" : 15
    "Core Dev (24-Mo Cliff)" : 10
    "Partnerships & Audits" : 5
```

| Allocation                                       | Share   | Notes                                 |
| ------------------------------------------------ | ------- | ------------------------------------- |
| Initial DEX Liquidity Pool (Uniswap v4)          | **40%** | Genesis trading liquidity             |
| Community Emission Reserve (esWOLF Yield Pool)   | **30%** | Fixed pool funding all staking yields |
| Ecosystem Treasury & Protocol Reserve            | **15%** | Protocol operations                   |
| Core Development                                 | **10%** | 24-Month Linear Cliff                 |
| Strategic Partnerships & Initial Security Audits | **5%**  | —                                     |

## Deflationary pressures

<AccordionGroup>
  <Accordion title="Hard Supply Cap" icon="lock">
    Fixed at genesis; no `mint()` function exists on `WolfToken.sol`.
  </Accordion>

  <Accordion title="Treasury Buyback & Burn" icon="fire">
    Real cash yield harvested from Lighter Protocol is used to buy back WOLF on the open market and send it to the dead address (`0x000…burn`).
  </Accordion>

  <Accordion title="Vesting Slash Destroy" icon="scissors">
    Forfeited esWOLF from early-exiting users is removed from circulation.
  </Accordion>

  <Accordion title="Supply Squeeze" icon="compress">
    The 10:1 reservation rule locks substantial portions of circulating WOLF in smart contracts during active vesting phases.
  </Accordion>
</AccordionGroup>