# Tokenomics The WFD token will have several utility purposes for project proposers, backers, and token holders. With the WeFund community in mind, WFD token holders will have dedicated allocation assignments (mentioned below) available to them. The dedicated allocation will vary based on project proposers and community feedback. The purpose of dedicated allocation for WFD token holders is to allow small, individual investors to participate in projects, preventing institutional investors from filling the entire allocation. Additional benefits include **Deflationary Action** - A percentage of WeFund profit will be dedicated to buy and burn WFD tokens as needed to keep WFD value strong and reduce volatility. **Reduced Transaction Fee for NFT Holders** - WeFund NFT (NFTs are awarded to those staking WFD token) cardholders will have a reduced transaction fee based on the tier of the NFT card owned. **Additional Investment Allocation** **Ecosystem (Staking Rewards)** - WeFund will implement various opportunities that reward the WeFund community, token holders staking the WFD token, and various educational programs to increase engagement with projects on WeFund and the WeFund community. **Access to private (pre-seed, seed) fundraising** - Black & Gold card staking only. I**nvestor data access for projects in the incubation process** - Black card staking only --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://wefund.gitbook.io/wefund-whitepaper/wefund/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.