# Token circulation

1. **Overview of Token Application**
   * **Purpose**: $LAWD tokens are primarily used for transactional activities within the Lawyerd platform, facilitating access, rewards, and premium features related to community-driven brand protection efforts.
2. **Token Utilization by Brands**
   * **Access Purchase**: Brands can access the Snitch-to-Earn system by converting 3000 euros into $LAWD tokens.
   * **Subscription Model**: Brands may opt for a monthly subscription, paying 1000 euros (converted into $LAWD tokens) to utilize community-driven brand protection services.
   * **User Incentives**: Brands can set rewards for users detecting violations, starting at 1 euro per violation in $LAWD tokens, with a minimum purchase of 1000 rewards.
3. **User Engagement and Benefits**
   * **Access and Staking**: Users must stake $LAWD tokens to access the platform, with the amount varying by desired access levels and privileges.
   * **Staking Benefits**: Higher stakes unlock enhanced features, including case validation, increased reward potentials, and faster payout options.
4. **Reward System**
   * **Fiat Rewards**: Users receive rewards in fiat currency for successful reports, ensuring the stability of reward value.
   * **Dynamic Calculation**: Rewards are dynamically calculated based on the violation's severity, user’s stake, accuracy of reports, and historical performance.
5. **Passive income for high-stakers**
   * **Transaction Fees**: Share a portion of the transaction fees collected on the platform with users who have staked above a certain threshold. This includes fees from brand services, dispute resolutions, or any other premium services offered.
   * **Service Fees**: If the platform charges brands for IP protection services, a percentage of these fees will be distributed as dividends to high-stake users.
   * **Infringement data selling**: High-stakers will receive part of the compensation from the database with infringement selling to AI brand protection service providers.
6. **Tokenomics**
   * **Distribution**: Token allocation includes categories such as team, marketing, reward pool, public and seed investment rounds, and founders.
   * **Release Schedule**: Tokens are gradually released following a vesting schedule to support ongoing platform development, market expansion, community incentives, and overall ecosystem growth.
7. **Platform Fees**
   * **Transaction Fee**: Lawyerd imposes a 1% fee on specific token exchanges on the platform related to buying services by brands or receiving rewards by users.

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