# Tokenomics

The tokenomics of $HOOT are meticulously crafted to ensure fairness, stability, and long-term growth. Its distribution model promotes inclusivity, while supply dynamics balance scarcity and liquidity. Innovative inflation/deflation mechanisms and the utility within the ecosystem further enhance its value proposition, fostering a thriving community and sustainable development.

### HootChain Tokenomics 🌴

* Maximum supply: 9.95 million HOOT
* Quarterly reward reduction: \~6.25%
* Initial block reward: 5 HOOT
* Block frequency: 60 Seconds
* Masternode collateral: 3000 HOOT

### Block rewards will be divided as follows:

* Miners: Variable%
* Masternodes: Variable%
* Development fee: 5%
* Superblock rewards: 2.5%

**The block reward distribution will gradually shift over the next seven months to a permanent split between miners and masternodes.** It will start with 60/40 split between miners and masternodes, each month, the proportion allocated to miners will decrease, while the portion for masternodes will increase, until they reach their final allocation of 20/80 respectively. The reward allocation for Masternodes is set to increase every month untill final ratio is achived.<br>

<figure><img src="https://3016926598-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIT4C3Hm0iZRVhb5RSKoB%2Fuploads%2FaRl11GUHM5qArrT2B1c5%2FBlock%20Distribution.png?alt=media&#x26;token=11d0ba53-20a1-40ac-9d3d-c21289b82ab9" alt=""><figcaption></figcaption></figure>