> For the complete documentation index, see [llms.txt](https://kb.projectmerge.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.projectmerge.org/faq/tokenomics.md).

# 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.