> For the complete documentation index, see [llms.txt](https://docs.torus.win/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.torus.win/supply-mechanics.md).

# Supply Mechanics

TORUS manages its token supply through two methods:

1. **Primary Supply (Creating):**
   * Users generate TORUS tokens upfront when Creating, guaranteed as principal at the end of the period.
   * Ensures value even if the TORUS Pool is diluted, boosting profitability.
2. **Secondary Supply (TORUS Pool):**
   * A fixed number of tokens are distributed daily to Creators and Stakers based on Shares.
   * Daily distribution decreases by 0.08% perpetually, limiting total supply (e.g., <125M tokens over 20 years).

**TORUS Token**: Supports governance, allowing voting on parameter adjustments if needed.