# Tokenomics

## Overview

The ProtoFi ecosystem offers a host of innovative features meant to safeguard and maximize investments through a variety of unique features.&#x20;

## The Dual Token System

The protocol includes two native tokens: ELCT and PROTO - each of which serves a different purpose. The PROTO token can be freely bought and sold on the market, whereas ELCT can only be obtained by staking PROTO in nucleus pools or buying it on the OTC market using PROTO.

The ELCT token represents a share in the protocol itself. It enables its holders to receive indefinite dividends as long as its held; the dividends distributed to holders is taken directly from the protocol's profits generated as a result of swap fees, deposit fees, and all other revenue-generating activities the protocol pursues in the future.

## Quantum Supply

What we have dubbed as 'Quantum Supply' is, functionally speaking, an elastic supply system that adjusts the PROTO emission rate in accordance with current market conditions. Its main goals are to protect users from bad actors, combat market manipulation, and, of course, support the PROTO token's price over the long-term. Read more about Quantum Supply [here](new-elastic-supply-mechanism/elastic-supply-based-on-marketcap-tvl-ratio).

## ProtoShield

In order to protect the protocol from sharp price fluctuations caused by large investors "dumping" substantial amounts of tokens at once, the protocol has implemented a transaction monitoring system. Read more about ProtoShield [here](security/investor-protection-logic/proto-shield).

## ChronoLock

Harvest period lock-ups have been implemented to combat against bots that put constant selling pressure on the native token by continuously harvesting and selling accrued rewards. Read more about ChronoLock [here](security/investor-protection-logic/chrono-lock).
