# Tokens

## Tokens Overview <a href="#tokens-overview" id="tokens-overview"></a>

Fang Finance utilizes a multi-token system designed to maintain the **$FANG** peg to **$ETH** and provide the best yield and stability mechanisms within the ecosystem. The primary tokens in our protocol are **$FANG &** **$gFANG.**

## $FANG Token

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**$FANG** is the primary yield token of the Fang Finance protocol, designed to act as a **medium of exchange**. Its built-in stability mechanism aims to maintain a peg of **1 $ETH** in the long run.

**Key Details:**

* **Initial Mint:** X **$FANG** were minted upon contract creation for initial liquidity, and **X $FANG** were allocated for genesis rewards.
* **Peg Mechanism:** $FANG pegs to $ETH through an algorithm, not collateralization.
* **Tokenomics:** Supply of $FANG is increased when above peg, and maintained when below peg. The supply is, in theory, unlimited; but supply expansion rates are dependent on the revenue generated by the Fang Treasury. This way all newly minted $FANG is always 100% backed by $ETH in the Fang Treasury.

{% hint style="info" %}
Note that FANG **actively pegs via the algorithm**, it **does not mean** it will be valued at 1.01 $ETH at all times. FANG is not to be confused for a crypto or fiat-backed stablecoin.
{% endhint %}

## $gFANG Token

<div align="center"><figure><img src="https://451593662-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FlE0JUZjztrREgQuplRns%2Fuploads%2FXKfAZDx53OjHlDuUZ07S%2FgFANG1500.png?alt=media&#x26;token=0dfd7542-1627-42cf-8492-286afc3f9e0f" alt="" width="188"><figcaption></figcaption></figure></div>

**$gFANG** represents protocol ownership.. It also acts as a share token that reflects confidence in the protocol’s ability to maintain **$FANG** at its peg, as well as the strength of SuperNovaincentives/voting system.

**Key Details:**

* **Initial Mint:**  X **$gFANG** were minted upon contract creation for initial liquidity **w/ X $USDC worth of $ETH**, and **X $gFANG** allocated towards liquidity rewards.
* **Tokenomics:** **X $gFANG** for liquidity rewards over **2 years linearly**; X $gFANG to the Team also linearly over 2 years.
* **Epoch Expansions:** During expansion epochs, **$FANG** is minted based on generated revenue and distributed to **$gFANG** holders who have staked in **The Nest**.
* **Governance:** Holders of **$gFANG** have voting rights and can participate in protocol governance, shaping its future development.
* **Bootstrapping Epoch:** The initial Nest prints are guaranteed during the **first** **3 days (12 epochs).**