# CAD Token and esCAD Staking

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**Note:** The $CAD token will undergo a token migration to the new Symphony Token at a 1:1 conversion rate (i.e. with no dilution). The tokenomics for the new Symphony Token will be released soon. An official announcement will be made soon.
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## Overall CAD and esCAD Utility 

Cadence's tokenomics are built to provide the most value to the **CAD token holders**, which serves as the projects main utility and value capture mechanism. As Cadence evolves, the value of the CAD token will increase with the extra use-cases from Symphony integration. 

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**Note:** $esCAD can no longer be earned and is non-transferrable.since the sunset of Cadence Perps but will still undergo conversion to the new Symphony token at migration.
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**Utility of the CAD token includes:**

1. 100% of fee revenue redistributed to $CAD
2. Governance voting rights
3. Long-term increasing share of protocol through the exit fee mechanism
4. Staking benefits for traders such as increased incentives and rewards
5. Referral program rewards
6. Solvers must stake $CAD to participate (Symphony)
7. Gas payment token via Account Abstraction (Symphony)
8. Other unique strategies and products in the future (Symphony)

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## $CAD Tokenomics

### $CAD Staking

Staking on Cadence is built with a system that benefits our community of long-term holders in mind. This will ensure maximum value capture and sustainability for our long-term stakers.

Staking on Cadence intends to:

1. Incentivize and reward long-term stakers.
2. Give back 100% of protocol revenue to stakers.
3. Offer security from wash-trading and short term trading effects.
4. Reward traders through incentives while balancing the health of long-term stakers.

### Token Supply

The increase in circulating supply will vary depending on the number of tokens that get vested, and the amount of tokens used for marketing / partnerships. The forecasted **max supply is 250 million CAD Tokens**. 

Minting beyond the max supply of 250 million is controlled by a 28 day Timelock. This option will only be used if more products are launched and liquidity mining is required.