> For the complete documentation index, see [llms.txt](https://farmcity.gitbook.io/farmcity-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://farmcity.gitbook.io/farmcity-whitepaper/tokenized-assets-and-tokenomics.md).

# Tokenized Assets & Tokenomics

### What is Tokenization?

Tokenization is the process of converting a physical asset, like a farm, into digital tokens that can be bought, sold, or traded on the blockchain. Each token represents fractional ownership of the asset, allowing multiple investors to own a share without needing to manage the asset directly. This approach opens up new opportunities for investment in traditionally inaccessible markets, like farming.

### Current Farm Asset

FarmCity’s currently valued at $1 million USD, and this valuation is steadily increasing as the farm continues to expand. Our farm is fully operational, with established systems and infrastructure in place, making it a stable and reliable investment opportunity.

### Tokenomics

**Fund Allocation**: When NFTs are sold, 80% of the raised money is used to further grow and enhance the farm, ensuring continued development and profitability. The remaining 20% is deposited into MarketVault, providing market liquidity for those looking to sell their NFTs.

**Profit Sharing**: Profits generated by the farm are shared in the following way:

* **40% to NFT Owners**: As a token holder, you receive 40% of the profits, directly reflecting the success of the farm.
* **20% to MarketVault**: This portion is allocated to increase market liquidity, making it easier for investors to trade their NFTs and also increasing NFT value.
* **40% for Management**: The management team receives 40% of the profits, ensuring they are incentivized to continue growing and maintaining the farm at its highest potential.