> For the complete documentation index, see [llms.txt](https://docs.world3.ai/world3/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.world3.ai/world3/readme-1/tokenomics.md).

# 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.