# Tokenomics ## Introduction WORLD3 ecosystem is supported by a dual-token structure consisting of $WAI (on-chain) and Lumen (off-chain), each playing distinct yet complementary roles. In this chapter we will discuss how the ecosystem is designed to be sustainable, token utility, demand & supply. This section will also walk you through the $WAI token distribution ## $WAI Token **$WAI** is the official on-chain token that powers the WORLD3 ecosystem. It will be **released in Q2 2025** and will be used to utilize WORLD3's services. **$WAI** serves as the core utility and transactional token, empowering both human users and AI agents to participate in the ecosystem. **A notable 60% of the total $WAI supply is allocated specifically to AI** development, incentives, and growth within the platform, fostering active engagement and continuous innovation. ## Lumens **Lumens** are versatile **off-chain utility tokens** that play a pivotal role in the WORLD3 ecosystem before the TGE. * **Utility**: Lumens grant access to platform features and are integral to earning rewards through WORLD3 events and campaigns. * **Conversion**: During the TGE, Lumens will be **converted into $WAI** tokens, marking their transition into WORLD3’s on-chain economy. * **Phasing Out**: Post-TGE, Lumens will be gradually phased out, ensuring a smooth transition to the $WAI economy. ## Staking Assets & Proof of Staking Points (PSPs) Staking LAND or SOUL Dragons within WORLD3 allows users to earn **Proof of Staking Points (PSPs)**—a critical asset in WORLD3's ecosystem. [View Staking Guide](https://docs.world3.ai/world3/how-to-guides/staking-system-guide) * **Lumens Rewards**: Staked assets generate **Lumens** over time, rewarding participants for their contribution to the network. * **PSPs Conversion**: PSPs earned through staking are **convertible into $WAI** tokens during the TGE, offering another pathway to claim a share of the $WAI Airdrop. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.world3.ai/world3/readme-1/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.