> For the complete documentation index, see [llms.txt](https://gem-web3-vision.gitbook.io/wp/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://gem-web3-vision.gitbook.io/wp/phase-3.-gem-dollar/gemusd-tokenomics/gemusd-additional-issuance-and-profit-sharing.md).

# GemUSD additional issuance and profit sharing

Logic for issuing additional GemUSD

If the TWAP (Time-Weighted Average Price) of GemUSD exceeds $1.10, a new GemUSD will be minted according to the following table.

<table><thead><tr><th width="150">GemUSD TWAP</th><th width="121">Mint amount</th><th>Example</th></tr></thead><tbody><tr><td>GemUSD &#x3C;= $1.10</td><td>No mint</td><td>1 GemUSD is not minted when GemUSD's TWAP is $1.09</td></tr><tr><td>GemUSD > $1.10</td><td>Varies between 3% and 0.5% (see table below)</td><td>When GemUSD TWAP is $1.12 and GemUSD has 3 million outstanding, 3%, or 90,000 GemUSD, will be minted</td></tr></tbody></table>

<figure><img src="https://216355867-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYKt90g2QnGi65YQ8do90%2Fuploads%2FPPSP9rYEmUmO5Q6PupvH%2Fgemusd.png?alt=media&amp;token=e253538c-7add-4cd5-9c22-f8b186428375" alt=""><figcaption><p>This table may be revised before launch</p></figcaption></figure>

The number of mints will gradually decrease as the total number of mints issued increases.

The TWAP refers to the Oracle.

### Epoch time

The TWAP is determined once every 24 hours to determine if the TWAP exceeds $1.10. This time unit is called Epoch.

> 1 Epoch = 24 hours

### Distribution

The GEM Hedge Fund will **sell** additional GemUSD issued to the market on a dollar cost averaging basis. The marginal gain from the sale will be **distributed** in proportion to each user's GemUSD lock volume.

> Amount received from sale - (Redemption reserve per GemUSD x number of additional issues) = Total distribution
>
> Example: \
> Additional issue 900,000 GemUSD sold at an average of $1.15 1,035,000 - (1 x 900,000) = $135,000 total dividend
>
> If 20,000,000 GemUSD locked 20,000,000 / $135,000 = $0.00675 dividend per lock
>
> If a user locks 10,000 GemUSD at a cost of $10,000 10,000 × $0.00675 = $67.5 dividend per Epoch (\*) This number is a rough estimate since not all GemUSD are sold within one Epoch.

### Treasury（20％）

As a treasury, 20% of the additional GemUSD issuance will be held by GEM hedge funds.