> For the complete documentation index, see [llms.txt](https://modadocs.gitbook.io/moda-dao-gitbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://modadocs.gitbook.io/moda-dao-gitbook/tokenomics.md). # Tokenomics **At a macro level, MODA DAO tokenomics are designed around the** [**Web3 Sustainability Loop**](https://blog.oceanprotocol.com/the-web3-sustainability-loop-b2a4097a36e)**, originally designed by Ocean Protocol in September 2020.** The Web3 Sustainability Loop posits that in order to create a sustainable ecosystem, a DAO (or any other Web3 based protocol for that matter) should aim to create a positive feedback out of its token. MODA's approach is simple; * Allow new members to purchase MODA tokens * Give members the ability to vote on MODA proposals * Ensure MODA proposals (proposed by the core team) contain token buybacks/grants which are then quickly enacted Token buybacks aim to benefit in the following ways; * Improves $MODA liquidity, incentivising the continued purchase of MODA tokens from new partners and members * Makes more $MODA available in the treasury to distribute back to staking rewards, potential voting rewards and artist grants Grants aim to benefit in the following ways; * Enables musicians to gain support in building their careers * Ensures consistent dissemination of $MODA token into the wider ecosystem * Puts the power of $MODA back into the hands of those who care about the project most