> For the complete documentation index, see [llms.txt](https://mainstreet-finance.gitbook.io/mainstreet.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mainstreet-finance.gitbook.io/mainstreet.finance/protocol-economics-1.md).

# Protocol Economics

Main St's tokenomic structure balances user rewards with protocol sustainability.

### **Revenue Distribution**

Yield flows through our staking system:

* 80% to msY Holders via the staking mechanism
* 10% to Insurance Fund for protocol resilience
* 10% to treasury

{% hint style="warning" %}
In circumstances where funding rates or yields significantly exceed competitive market rates, the protocol may retain a portion of yield from distribution. These retained yields may be allocated to multiple purposes including protocol operations, supplementing the insurance fund, and stabilizing returns during periods of lower market funding rates or yields. This mechanism helps ensure sustainable long-term performance.
{% endhint %}

### Token Architecture

* **msUSD** - A dollar-pegged token that serves as the base asset in our ecosystem. Each token is backed USDC.
* **msY** - The first strategy token that accrues yield when users stake their msUSD and is backed by the box spread strategy.

### Protection & Governance

The Insurance Fund receives 10% of generated yield, serving as defense during market disruptions.