---
description: Crocodile Finance Tokens
---

# Tokens

## Tokens Overview <a href="#tokens-overview" id="tokens-overview"></a>

Crocodile Finance utilizes a multi-token system designed to maintain the **$CROC** peg to **$AVAX** and provide governance and stability mechanisms within the ecosystem. The primary tokens in our protocol are **$CROC &** **$gCROC**

## **$CROC Token**

<figure><img src="https://1215704985-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fjr5dwpGviWFssGhPmQRN%2Fuploads%2FcPjUyROsK7aT0U5Mn5OL%2Fcroc-logo.png?alt=media&#x26;token=50b601e9-ee6a-43d8-aeb6-7181f2d00f5a" alt="" width="375"><figcaption><p>$CROC; primary token</p></figcaption></figure>

**$CROC** is the primary token of the Crocodile Finance protocol, designed to act as a **medium of exchange**. Its built-in stability mechanism aims to maintain a peg of **1 $AVAX** in the long run.

**Key Details:**

* **Initial Mint:** 50 **$CROC** were minted upon contract creation for initial liquidity, and **50,000 $CROC** were allocated for genesis rewards.
* **Peg Mechanism:** $CROC pegs to $AVAX through an algorithm, not collateralization.
* **Tokenomics:** Supply of $CROC is increased when above peg, and maintained when below peg. The supply is, in theory, unlimited; but supply expansion rates are dependent on the revenue generated by the Crocodile Treasury.\
  This way all newly minted $CROC is always 100% backed by $AVAX in the Crocodile Treasury.
* **Volatility:** It may not always be valued at exactly 1 $AVAX. **$CROC is not a crypto or fiat-backed stablecoin** and should not be treated as one.

{% hint style="info" %}
Note that CROC **actively pegs via the algorithm**, it **does not mean** it will be valued at 1 $AVAX all times as it is not collateralized. CROC is not to be confused for a crypto or fiat-backed stablecoin.
{% endhint %}

## **$gCROC Token**



<figure><img src="https://1215704985-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fjr5dwpGviWFssGhPmQRN%2Fuploads%2FNGNekjKm008ypaRtVNCm%2Fgcroc-logo.png?alt=media&#x26;token=4d956ae1-3657-4b60-a527-7385308fbc39" alt="" width="375"><figcaption><p>$gCROC; powerhouse of Crocodile</p></figcaption></figure>

**$gCROC** represents governance and protocol ownership. It also acts as a share token that reflects confidence in the protocol’s ability to maintain **$CROC** near its peg.

**Key Details:**

* **Initial Mint:** 300 **$gCROC** were minted upon contract creation for initial liquidity **w/ 1,000 $AVAX**, and **60,000 $gCROC** allocated towards liquidity rewards.
* **Tokenomics:** 60,000 $gCROC for liquidity rewards over 2 years linearly; 10,000 $gCROC to the Team also linearly over 2 years.
* **Epoch Expansions:** During expansion epochs, **$CROC** is minted based on generated revenue and distributed to **$gCROC** holders who have staked in **The Nest**.
* **Governance:** Holders of **$gCROC** have voting rights and can participate in protocol governance, shaping its future development.
* **Bootstrapping Epoch:** The initial Nest prints are guaranteed during the **first** **30 days (120 epochs).**
