Tokenomics
Understanding the economic model of the $SAGE token
Supply Mechanics
The $SAGE token is designed with a deflationary economic model to ensure long-term value accrual as the network grows. This is where the initial stablecoin offering shines. SAGEUSD yield can be used to compensate node providers instead of the inflationary model of other networks.
Fixed Supply
$SAGE has a fixed maximum supply, creating scarcity as adoption increases
No Inflation
Unlike many other networks, $SAGE does not have built-in inflation
Burn Mechanism
A portion of $SAGE tokens are burned when they are used to pay for network fees
Staking Lockups
Staked tokens are locked, reducing circulating supply and increasing scarcity
Demand Drivers
Multiple mechanisms create sustained demand for the $SAGE token:
Value Accrual Mechanisms
The $SAGE token is designed to capture value as the SAGE ecosystem grows:
Network Growth
As more users join the network and deploy agents, demand for $SAGE increases
Fee Generation
Network activity generates fees, which are used to compensate node providers with a portion burned.
Utility Expansion
As new use cases for $SAGE emerge, its utility and demand increase
Ecosystem Development
Development funded by SAGEUSD yield enhances the ecosystem, increasing $SAGE’s value
Economic Flywheel
The SAGE ecosystem creates a powerful economic flywheel:
$SAGE Economic Flywheel
SAGEUSD Growth
Increased SAGEUSD market cap generates more yield for development
Network Development
Enhanced development improves the SAGE network capabilities
Increased Adoption
Better capabilities attract more users and agent deployers
Higher SAGE Demand
More users and deployers create higher demand for $SAGE
Ecosystem Expansion
Growing ecosystem attracts more SAGEUSD holders, completing the cycle
Comparative Analysis
While Ethereum uses a burn mechanism through EIP-1559, $SAGE takes this further with:
- No built-in inflation (unlike ETH’s continued issuance)
- Stronger correlation between network usage and token value
- More direct value capture from the utility of AI agents
While Ethereum uses a burn mechanism through EIP-1559, $SAGE takes this further with:
- No built-in inflation (unlike ETH’s continued issuance)
- Stronger correlation between network usage and token value
- More direct value capture from the utility of AI agents
Compared to Solana’s token economics, $SAGE offers:
- Fixed supply with no inflation (vs SOL’s inflation model)
- Value capture from AI agent deployment and usage
- Sustainable funding through SAGEUSD yield rather than token inflation
The $SAGE token economics are designed to create a sustainable, value-accruing asset that benefits all participants in the ecosystem while funding ongoing development through the innovative ISO mechanism rather than token inflation.
Ready to learn more about how $SAGE is used in the ecosystem? Explore the token utility documentation.
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