# How New Tokens are Created

Each sale of a Good or Service within Game of Life will create a corresponding dollar value in tokens. For example, if a Personality NFT is sold for $100 USDC, then a $100 worth of Tokens will be created. In this way, all revenue generated via our Web3.0 sales will be reflected in the Tokens Created Automatically.

#### Now the created $100 worth of Tokens will be distributed to the community in the following ways:

1. Treasure DAO: \~51%
2. Staking Rewards Pool: \~15%
3. Creator Rewards Pool: \~15%
4. All Member Rewards: \~4%
5. Index Purchases: \~15%

## What does this mean?

Ultimately what we have is a Utility-Based Token that is backed by an Index of Cryptocurrencies and the future earnings generated by the community.

So for example, if Personality NFTs have a $100 price and $10 Royalty, here is what it the DAO holdings look like:

* Treasure DAO: $10 ETH (from Royalty)
* Treasure DAO: $51 Tokens
* Treasure DAO: $15 Index Purchase

So, the Token is now backed by $25 of Crypto Currencies and has $51 Tokens in reserves for a total value of $76 from this one transaction. The other $29 Token has been given back to the community for Staking, Creating, and just being holders.

## Revenue Sharing

New Tokens created are based on real sales and distributed to the community in a fair and transparent manner that incentivizes value creation.&#x20;

Since new tokens are created to match revenue this will inherently reward the community who holds the tokens for long periods of time (as they will earn more and more tokens) instead of speculators who are looking for a quick flip.

The newly created Tokens are similar to how a stock earns dividends. However, this should not be confused with a 'security', because it is not.&#x20;

## Store of Value

Even with a small 10% Royalty, the generated Tokens have a basis of value based on sales and are backed by an Index of Cryptocurrencies.  The worst-case scenario is that sales decrease and crypto prices crash. Even in a worst-case scenario, the Price has a floor represented by the Index and the project will only be valuable if it's helping people. This is the true test of value.


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