> For the complete documentation index, see [llms.txt](https://docs.bitplanet.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bitplanet.ai/advanced-topics/token-economics-technical.md).

# Token Economics Technical

Documentation covering Bitplanet's dual-token system, reward mechanisms, and economic incentives.

## Overview

Bitplanet implements a unique two-tier economic model that separates AI value creation from blockchain security, ensuring sustainable rewards for all participants.

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## Reading Guide

This section follows a logical progression from token fundamentals to reward mechanisms:

### 1. Token Fundamentals

Start here to understand Bitplanet's dual-token system:

* [**Core Tokens**](/advanced-topics/token-economics-technical/core-tokens.md) - Governance-controlled genesis allocations that bootstrap new AIs. Learn about the proposal process, expiry mechanisms, and 1:1 conversion to Gems.
* [**Gem Tokens**](/advanced-topics/token-economics-technical/gem-tokens.md) - AI-specific tradeable tokens in dual ERC-1155/ERC-20 formats. Understand minting process, market cap calculation, and the BeaconFactory deployment pattern.

### 2. Contribution Tracking

Understand how the system tracks and values contributions:

* [**AI Tensor Matrix**](/advanced-topics/token-economics-technical/ai-tensor-matrix.md) - Multi-dimensional contribution tracking system with 6 contribution types (TRAIN, REFER, CREATE, PROMPT, REVENUE, MARKET\_CAP). Learn about tensor storage, merging logic, and authorization flows.

### 3. Reward Mechanisms

Learn how rewards are calculated and distributed:

* [**Inflation Mechanism**](/advanced-topics/token-economics-technical/inflation-mechanism.md) - Detailed algorithm for siphoning 50% of inflation from the distribution module and allocating it proportionally by market cap. Includes three-way split (Creator 50%, Application 30%, Contributors 20%) and 30-90 day rolling average market cap smoothing.
* [**Reward Distribution**](/advanced-topics/token-economics-technical/reward-distribution.md) - Two-step allocation and claiming system. Understand claimable balances, EVM event-based claiming via `BplCoinClaimed`, and how contributors earn rewards based on historical tensor data.