# Tokenomics

### **Purpose of $CHA**

* Power The Cha Cha Shop
* Reward early supporters & loyal customers
* Align incentives between community & Team

### Token Mechanics

* **Max Supply:** 50,000,000 $CHA
* $CHA can only enter circulation via the Staking Program

### Token Release Schedule

* **Minimum Funding Period:** 4 years
* **Max Emission Rate:** 25,400 $CHA / day
* Actual token release schedule depends on staking activity of holders

### Staking Program

* Reward tiers with different reward rates based on van type
* Complete set = 1 van from each reward tier
* 2x reward multiplier for each complete set staked
* *Van upgrades = potential reward multiplier in the future*

![](https://1381100626-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIBlOhmPjFrUgQ18QYY5O%2Fuploads%2FdeqlhAFlwiOCloM5yUcB%2FTokenomics.png?alt=media\&token=f0123dc1-9e2f-49c8-a6ae-fc24f0005dbb)

### The Cha Cha Shop

$CHA powers The Cha Cha Shop — a design studio offering goods & services to Cha Cha Van holders. Holders can access features at the shop by spending $CHA:

* **Parking Garage:** *Park (stake) & earn $CHA*
* **Raffle House:** Buy raffle tickets & win 1/1 art
* **Boutique:** Designer apparel, posters & 3D-printed vans.
* **DMV:** Purchase UE5 assets for metaverse integration.
* **The Body Shop:** Upgrade van traits & racing specs.
* **Auction Room:** Bid on special edition Cha Cha Vans.

### Funding Rates

Income in $SOL or $USDC at the shop & racetrack will directly fund the Core Team. Income in $CHA from goods & services sold at the shop & racetrack fund the following incentives (subject to change):

#### **Team Rate — 10%**

Funds the Core Team, who reserve the right to sell $CHA for profit.

#### **DAO Rate — 20%**

Funds the DAO Treasury for community-led initiatives.

#### **Burn Rate — 30%**

Tokens burned to assure continued deflationary action of $CHA.

#### **Recycle Rate — 40%**

Funds the Staking Platform for a sustainable reward structure.

![](https://1381100626-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FIBlOhmPjFrUgQ18QYY5O%2Fuploads%2FIAT34digzc2VKT0oe9w0%2Fstaking%20announcement.png?alt=media\&token=bfd0c85a-c21e-4e56-b4b4-538fe6b8a6f1)