# SOEX Economic Model

SOEX relies on a solid and balanced structure that includes scenarios and tools for trading and social connections, with earnings on both sides. Everything from rewards and tasks to be performed to token generation and connections both to exchanges and other users come together into one comprehensive and rewarding framework.

The introduction of CVT and HVT has created a more sophisticated and effective economic model. These two assets fuel a referral-based system, allowing communities and leaders to join SOEX and leverage the assets to earn rewards. KOLs or community leaders can mint CVTs to establish on-chain communities, while their followers mint HVTs within these communities, unlocking earnings for everyone involved.

CVT minting plays a pivotal role as the only mechanism that initiates the creation of $SOEX tokens. Beyond the 20% allocated to the CVT minter, $SOEX tokens are distributed throughout the platform, with portions directed towards HVT staking rewards, liquidity providers, investors, developers, and the treasury, as shown below.

<figure><img src="/files/oroDqxe7IBAIKYPoMsDy" alt=""><figcaption></figcaption></figure>

When a user mints a CVT, the SOL used is locked by a smart contract and split equally, with 50% converted to $SOEX and 50% remaining as SOL, both added to the liquidity pool. Additionally, exchange trading commissions are also divided 50/50, with one part allocated for buyback and burn, while the other is reinvested into the liquidity pool.<br>


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