# Tokenomics ## **What is Merge Tokenomics about?** Merge Tokenomics is the concept that allows consumers to use [services](/master.md#merges-services) **by locking up** their capital in our private, secure and registered escrow during the period they use these services. At the same time, service providers **get paid** for their work thanks to the passive income Merge generates with the capital borrowed from the consumers. At the end of the service agreement, consumers **get their capital back**, having been able, in turn, to use the services they needed during a predetermined period of time. ## **Who pays the service providers?** [Merge Blockchain Development Group](https://mergebcdg.com/) (Merge BCDG USA LLC) is a corporation registered in USA that acts as the trusted third-party ([escrow](/master.md#escrow-services-using-tokenomics)) between consumers and service providers. This corporation is in charge of **protecting** the capital from the consumers and **paying** the providers for the services they deliver. ## **How does Merge BCDG pay the service providers?** Merge BCDG pays the service providers by generating MERGE rewards with the capital consumers lock. Merge BCDG obtains these rewards by either [staking](https://kb.projectmerge.org/guides/wallet/pos-staking) the coin or setting up MERGE [masternodes](https://kb.projectmerge.org/guides/wallet/masternodes). When the capital was lent in USD, Merge BCDG converts it first into MERGE in order to generate the corresponding rewards for the providers. The corporation uses **all** those rewards to **pay** the service providers without charging any fees or commissions. ## **How can I start using a service?** Choose a [service](/master.md#merges-services) and follow the steps that are indicated. This involves the **locking** a predetermined amount of your capital. The **deposit** can be made through two different channels: * From the USA-registered corporation, [Merge Blockchain Development Group](https://mergebcdg.com/shop) (Merge BCDG), for payments in **USD**. * From our crypto payment gateway, for payments with **cryptocurrencies**. As soon as the deposit is made, the corresponding service provider will contact you to proceed with the service setup. ## **How long can I use a service?** Each service provider sets the time period for a service to be used. This is, usually, on a monthly, quarterly or yearly basis. When the service's end period approaches, both the service provider and yourself will have the opportunity to negotiate the **renewal** of the service. If both sides wish to continue, the service renews automatically for another cycle. ## **What happens with the capital I lent once I stop using a service?** The capital you lent is **entirely returned to you**. If you did send USD, this time you get MERGE coins (tokens) back, being free to decide whether to exchange them for another coin or keep them as they are. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://kb.projectmerge.org/faq/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.