# Drops Token Economics

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**Contract:** 0xa562912e1328eea987e04c2650efb5703757850c
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**The DROPS Token is the core component of the** [**Drops Marketplace and ecosystem**](https://drops-2.gitbook.io/drops-documentations/marketplace-earnings)**.** It is the primary currency used within the platform to buy, sell and trade liquidity. It also allows for earnings to occur via multiple outlets.

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### Tokenomics 

<table><thead><tr><th>Section</th><th>Numeric Values</th><th data-hidden></th></tr></thead><tbody><tr><td><strong>Total &#x26; Fixed Supply</strong> </td><td><strong>10,000,000 DROPS</strong> <em>(10 Million)</em></td><td></td></tr><tr><td><strong>Trading Fees</strong> </td><td>5<strong>%</strong> <em>(Tax on Buys &#x26; Sells)</em> </td><td></td></tr><tr><td><strong>Transfer Tax</strong></td><td><strong>0%</strong> <em>(No Transfer Tax)</em></td><td></td></tr></tbody></table>

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### Distribution of Trading Fees

<table data-view="cards"><thead><tr><th></th><th></th><th></th></tr></thead><tbody><tr><td></td><td>   <strong>1% Platform Earnings</strong></td><td></td></tr><tr><td></td><td>           <strong>1% Liquidity</strong> </td><td></td></tr><tr><td></td><td> <strong>3% Marketing &#x26; Platform</strong></td><td></td></tr></tbody></table>

* **1% Platform Earnings:**

This 1% Fee is considered as platform earnings, and is distributed in accordance with the Distribution of Earnings section of this documentation.

* **1% Liquidity Provision:**

In order to increase liquidity strength, a 1% fee is taken on buy & sell transactions and added to the DROPS Token core liquidity pool. This minimizes price impact on trades, creating sustainability within the token and facilitating its use within the Marketplace.

* **3% Marketing & Platform Development:**

In order to further both the visibility and operability of the platform, a 3% fee is taken on all buy & sell transactions. Funds collected as a result of this fee are used for a variety of purposes, which include, but are not limited to, promotional endeavours (namely via social media outlets), advertisements, listings on recognized sites & platforms and costs associated with platform expansions.

### Supply Distribution&#x20;

**86% Uniswap V2 Liquidity:**

86% of the total supply is added to the Uniswap Liquidity Pool at launch. This supply will be publicly available for purchase directly on the market.

**14% DROPS Reserves:**

The remaining 14% of supply will be reserved for endeavors associated with the expansion of the DROPS Marketplace and Token. These endeavors include, but are not limited to, marketing and promotional activities, yield & reward increases and encouragement of marketplace engagement.