# SECTION 2: Token distribution & allocations

**After Phase 0,** Smart Dollar is designed so that only one of these 2 phases can be executed :

*(Epoch = Hours)*

**-------------------------------------------------------------------------------**

**PHASE 1 : Expansion Phase,** *the price is above $1.*\
\&#xNAN;*All the DAO-users and Farming-users are earning reward, the supply expanding to force the system get back to $1.*\
**-------------------------------------------------------------------------------**

**PHASE 2 : Contraction Phase,** *the price is bellow $1.*\
\&#xNAN;*DAO-users and Farming-users are not earning reward and all users can burn SD to receive coupons in exchange to help the protocol get back to $1.*\
**-------------------------------------------------------------------------------**

**Phase 0 : Bootstrap,** the price doesn't matter. \
\&#xNAN;*The bootstrap phase force the system reward to act like the market price of SD was 1.53,*

*All the users are earnings reward as if the price was 1.53 even if we are in contraction phase, until EPOCH 300, after we will enter Phase 1 or Phase 2 in function or the market price.*\
**-------------------------------------------------------------------------------**<br>

**Team fund allocations :** \
\&#xNAN;*Every EPOCH, the system reward 50 SD to the team wallet.*<br>

**1200 SD Daily,** <br>

* **400 SD are burn**
* **800 SD for team fund & treasury**&#x20;

*The team doesn't’ not hold tokens, this is the only revenue the team receives from SD contracts.*<br>


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