> For the complete documentation index, see [llms.txt](https://kgen.gitbook.io/kgen/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kgen.gitbook.io/kgen/tokenomics/usdkgen/kgen-2.0-revenue-becomes-tokenomics.md).

# KGeN 2.0: Revenue Becomes Tokenomics

KGeN 2.0 introduces a new tokenomic framework designed to align business growth with long-term token value creation.

The framework consists of two phases:

1. **Genesis Burn** — a one-time retirement of dormant token supply.
2. **Structural Supply Reduction Mechanism** — a recurring reduction system linked to KGeN's AI business revenue.

Together, these mechanisms transition $KGEN toward a deflationary model where network growth contributes directly to long-term supply reduction.

<br>