# Tokens

PIGGY token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Piggy's peg to 1 AVAX token in the long run.&#x20;

PIGGY Shares (PSHARE) are one of the ways to measure the value of the Piggy Protocol and shareholder trust in its ability to maintain PIGGY close to peg. During epoch expansions the protocol mints PIGGY and distributes it proportionally to all PSHARE holders who have staked their tokens in The Farm.

PSHARE holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Piggy finance ecosystem.

PSHARE has a **maximum total supply of 70000** tokens distributed  as follows:

1. _DAO Allocation: 7000_ PSHARE vested linearly 12 months
2. _Team Allocation: 1400_ PSHARE vested linearly over 12 months
3. _Rewards: 59500_ PSHARE are allocated for incentivizing Liquidity Providers in two shares pools for 12 months
4. Initial mint: 1 PSHARE minted upon contract creation for initial pool

PIGGY Bonds (PBOND) main job is to help incentivize changes in PIGGY supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of PIGGY falls below 1 AVAX,  PBONDs are issued and can be bought with PIGGY at the current price. Exchanging PIGGY for PBOND burns PIGGY tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 AVAX. These PBOND can be redeemed for PIGGY when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for PIGGY when it is above peg, helping to push it back toward 1 AVAX.

All holders are able to redeem their PBOND for PIGGY tokens as long as the Treasury has a positive PIGGY balance, which typically happens when the protocol is in epoch expansion periods.

