# Policy

The token has to be closely inspected on all these criteria before it is used as collateral. This policy is subject to change based on governance decisions. Over time these policies may be better able to support new and small scale projects.&#x20;

## Circulating Supply

Over 51% of the tokens existing supply needs to be in circulation.&#x20;

## Non-Circulating Supply

Less than 50% of the supply needs to be non-circulating.

## Status of any non-circulating tokens

There needs to be a defined stable release of the non-circulating supply, so as to be sure that there isn't a sudden release that drastically affects the tokens price.&#x20;

## Inflation policy

It's preferred to have a set number of tokens that will ever be created and no further ability to cause inflation. If inflation is enabled, then controls of inflation will be examined thoroughly.&#x20;

## Available on-chain liquidity

Initially a stable value of liquidity of above USD $1 million is required.&#x20;
