# 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

<figure><img src="/files/gduKZfis4QnCsNijBJU5" alt=""><figcaption></figcaption></figure>


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