# Tokenomics C (Token Economy)

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The YappaFi capital flow chart above shows the transfer of data (monetary, literal, or actioning) between each party within the ecosystem.

The user has multiple choices of interactions, but primarily users will enter the ecosystem by Yapping (engaging with social media via the YappaFi extension) which grants the user YAPp. The user can spend that YAPp on vouchers (which burns the YAPp), or on the first day of every month they can swap their YAPp for $YPA.

$YPA can be also acquired via purchase on a DEX/CEX.

The user has 3 options with $YPA: they can trade it for FIAT, they can stake it to earn rewards in $YPA or to earn YAPp boosts, and they can use it to purchase merchandise from the YappaFi marketplace. Regarding the latter, some of the $YPA will go to partners and vendors featured in the marketplace, and the rest will go back into the YappaFi Ecosystem.

The YappaFi Ecosystem is a representation of the Ecosystem Rewards and the Treasury tranches as mentioned above; it has an allocation of tokens, and it receives $YPA from the marketplace sales.

In the event the Ecosystem Rewards tranche runs low on $YPA the Ecosystem itself can enact a buyback to ensure the token pool is available for the monthly exchange from YAPp to $YPA.

In addition, the Ecosystem can enact an ad hoc burn in case the supply of $YPA rises too much.

The Ecosystem also utilizes the buyback monthly to ensure that the price of $YPA does not suffer from sudden supply shocks (more details in the next paragraph).

The YappaFi Ecosystem yields revenue from the partners who pay for the Data API and to advertise the vouchers. The Ecosystem also constantly invests any excess revenue into nodes on the Ethereum, Polygon and other ecosystems to create a constant, passive revenue stream.

This allows YappaFi to keep the operation running unendingly and unremittingly. The YappaFi Ecosystem also uses the buyback mechanism to purchase $YPA which it then sends to the market maker, who uses these $YPA to set up buy orders every month to negate the sell pressure from users who trade their YAPp to $YPA and sell.

This system keeps price stable, ensures there’s revenue to be had for every participant, and has multiple failsafes to prevent any shocks to the system, internal or external.
