> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jpeg.fun/llms.txt
> Use this file to discover all available pages before exploring further.

# Dual Token System

> JPEG runs on a dual-token system designed to keep play fluid and ownership aligned

## Dual Token System

JPEG runs on a dual-token system designed to keep play fluid and ownership aligned.

**Pixels (PX)** power daily interactions.

**\$JPEG** anchors the broader economy.

## Shares-for-Fees Model

The JPEG economy operates on a **Shares-for-Fees** model, ensuring 100% of the PX (Pixel) currency deposited by users is immediately allocated to the global prize pool. Platform and creator fees are paid in the form of shares, introducing controlled dilution to winning potential rather than reducing capital available for rewards.

### Key Benefits

* **Capital Efficiency:** 100% of user capital goes to the prize pool
* **Transparency:** All fees visible through share dilution
* **Fairness:** Early collectors rewarded through time discount mechanism
* **Sustainability:** Platform and creator fees via controlled dilution

### How It Works

When users collect photos:

1. **100% of PX** goes to the prize pool
2. **Creator shares** are issued as royalties (typically 20% via `R_C`)
3. **Foundation shares** are issued for platform operations (typically 10% via `R_F`)
4. **User shares** are issued based on bet amount and time discount

This ensures maximum capital efficiency while maintaining sustainable economics for creators and the platform.

## Token Details

### Pixels (PX)

**Purpose:** In-game token for themed collects and freestyle purchases

**Design Philosophy:**

* Designed to feel non-financialized for users
* Focused on gameplay and interaction
* Low-friction daily use

**Use Cases:**

* Collecting themed photos
* Purchasing freestyle JPEGs
* Earning through royalties and sales

### \$JPEG

**Purpose:** Governance token for investors

**Design Philosophy:**

* Enables speculation on platform success
* Deflationary mechanism through profit reinvestment
* Long-term value alignment

**Mechanism:**

* Profits from the app are reinvested
* Creates deflationary pressure on \$JPEG
* Rewards long-term holders

<Info>
  The dual token system separates gameplay tokens (PX) from investment tokens
  (\$JPEG), allowing users to focus on creative expression while investors can
  participate in platform growth.
</Info>