# Tokenomic
**No team allocations — just a fair launch.**
**Initial FDV: 1M$**
#### What is a Rebase?
A **rebase token** is one whose circulating supply adjusts automatically on a fixed schedule. In the case of $WM, this adjustment is **deflationary** — meaning the supply gradually **shrinks** over time.
After each rebase, every holder's balance is reduced proportionally, so the **share of the total supply remains the same**. However, since the total supply is shrinking, **each individual token now represents a larger portion of the remaining supply** — making every $WM token more valuable over time, especially when measured against the base asset ($S).
This mechanic creates **extreme scarcity over time** and aligns long-term incentives for participants who are actively involved in the protocol.
**Benefits of the Design:** The deflationary rebase model offers two major benefits:
* **Redistribution rewarding active users:** As one of the key missions of the protocol to generate active community members, mechanics are designed to reward them.
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Active Rebonding and Staking farming allow users to generate additional $WM tokens basically fighting rebases, which results in a greater share of $WM tokens to active members rather than passive holders.
* **Effects on Price:** In a deflationary rebase, if demand and total invested capital remain constant, the **price per token** will increase as supply decreases. For example, suppose at launch 1 $WM = 1 $S. If after some time the supply has halved while the total value in $S backing the system is unchanged, then theoretically 1 $WM should be worth \~2 $S (because half as many tokens now split the same value). In WoMo case, the extreme reduction in supply (1000× reduction) implies that, **all else being equal, each token’s price in $S should multiply roughly 1000×** by the end of the rebase schedule.
The design incentivizes holding or staking rather than selling, because selling early could mean missing out on the large increase in price per token that the rebasing mechanism drives.
| **Allocation** | **Amount ($WM)** | **Purpose** |
| -------------- | ---------------- | --------------------------------------- |
| Bonding | 900,000,000 | Bonding program |
| Liquidity | 50,000,000 | Initial liquidity pool (LP) |
| Marketing | 50,000,000 | Marketing, partnerships, and promotions |
#### The Deflation Curve
Launched with a fixed supply of **1 billion $WM tokens**. Through the protocol’s built-in mathematical model, this number will continuously decline via rebasing until it reaches **1 million tokens** — a **1000x reduction in total supply** over approximately **three months**.
Once that target is reached, the rebasing will **permanently stop**, locking in a final, ultra-scarce supply.
In summary, the rebase mechanics of $WM ensure a predictable, **programmatic reduction of supply**. This mechanism underpins the entire economy of the project, influencing how users should best participate (simply holding vs. providing liquidity or bonding) [read about value extraction](/value-extraction-strategies/strategies.md).
The target is to reach 1,000,000 $WM tokens at the end of the three-month period after deploy. Once that point is reached, the scheduled deflationary rebases are complete – the token has achieved its supply reduction goal. After that, **no further automatic rebases are programmed** under the initial design.
**Maturity period.**
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During the rebase and maturity periods, the treasury will be utilized for $WM concentrated liquidity pools, parallel liquidity arbitrage and partner farms to generate constant yield for treasury, hence increasing backing price of $WM.
Full DAO mode.
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Holders of $WM tokens will have a final voting power on utilization of the treasury. This may include partial redemptions, utilization for staking and farming, supply to money markets, earning yield as Sonic validators, investment into other protocols etc.
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Accumulated fees and farming yield in the treasury over 6 months will be redistributed to the Staking contract for further incentivization of holders.
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