> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sageprotocol.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# $TRUST Mechanics

>  

The Sage Protocol economy centers around \$TRUST, crypto’s first Earned Mint Token (EMT). Unlike traditional tokens with arbitrary or speculative issuance, \$TRUST tokens are minted solely from verified onchain user contributions. This directly ties economic rewards to genuine social activity and real network growth.

### **Earned Mint Token (EMT) Model**

\$TRUST tokens follow the [EMT model](/introduction/3-emt) closely—meaning they're minted exclusively from user actions validated by Sage’s Proof of Social Contribution (PoSC). This ensures every token issued directly represents real, measurable social contributions.

### **\$TRUST Minting Phases & Pricing Mechanics**

Token minting unfolds across two clearly defined phases, each governed by the protocol’s `MintConfig`:

1. **Phase 1: Fixed Mint Pricing (Bootstrap Phase)**\
   At first, tokens are minted at a fixed price (for example, \$0.000001 USD per \$TRUST). This approach helps build early liquidity and encourages initial participation until certain liquidity targets are reached. The reward calculation for Phase 1 is:

   <Info>
     \$TRUST reward = (Action’s Transaction Fee ÷ **Fixed \$TRUST Price**) × Action Weight
   </Info>
2. **Phase 2: Market-Driven Mint Pricing**\
   Once liquidity and market pricing stabilize, Sage shifts to dynamic, market-based minting. Token rewards then adjust in real-time based on the current market price of \$TRUST, keeping token issuance aligned with community growth and market conditions. The reward calculation for Phase 2 is:

   <Info>
     \$TRUST reward = (Action’s Transaction Fee ÷ **Market \$TRUST Price**) × Action Weight
   </Info>

### Eligible Actions and Action Weights

Eligible actions, action weights, and their adjustments are transparently managed on-chain by the `Reward` module with historical configurations tracked by the `Reward Registry` module. User interactions and contributions are captured by the `Analytics` module providing data-driven insights for ongoing weight refinements.

### **Supply Control & Treasury Management**

Token supply is securely managed through clearly structured, onchain mechanisms:

* **Protected Treasury**: The `ProtectedTreasury` structure manages the treasury cap, securely regulating minting operations. Clear runtime checks enforce maximum allowed supply constraints, ensuring token issuance aligns precisely with configured economic parameters.
* **Reward and Governance Witnesses**: Minting and administrative adjustments require authorization via secure witness-based validation (`RewardWitnessConfig`, `GovernanceWitnessConfig`). This runtime validation prevents unauthorized minting or token supply manipulation.

### **Economic Sustainability & Incentive Alignment**

Sage’s economic architecture ensures long-term sustainability and aligned incentives:

* **Cost-Anchored Rewards**: Rewards correlate with verifiable onchain economic activity, directly reflecting transaction fees paid by users. This alignment ensures token rewards mirror actual user-generated economic value, incentivizing genuine network contributions.
* **Incremental Incentives**: Sage employs incremental reward structures that encourage sustained user engagement—such as commenting, sharing, and liking—clearly incentivizing continuous, meaningful participation across the community.
* **Controlled Inflation and Adaptive Economics**: Using the action-weighting model (`RewardWeights` and `RewardWeightsRegistry`), administrators dynamically manage reward parameters and token minting rates. This adaptive approach maintains economic balance and responsiveness to evolving ecosystem dynamics.

### **Architectural Advantages**

Sage’s economic framework provides substantial practical benefits:

* **Transparency and Accountability**: All minting events, reward claims, and treasury activities are transparently recorded and auditable onchain, ensuring clear accountability and verifiability.
* **Adaptive and Sustainable Economics**: Clearly defined minting phases and dynamic reward adjustments ensure the token economy adapts to market and community conditions without disruption.
* **Robust Security and Controlled Minting**: Witness-based validation ensures secure, authorized token minting operations, safeguarding token supply integrity and ecosystem trust.

Through these defined economic mechanisms, Sage Protocol establishes a sustainable and transparent economic environment uniquely designed to reward genuine social contributions and encourage ongoing, authentic user engagement.