# The RWA token
The RWA token is the central piece of the re.al ecosystem. Previously known as TNGBL, RWA is the governance token of the entire chain, and a way to earn dividends from the chain's activity. Let's take a look at how you can benefit from staking your RWA tokens, and what to do with them on re.al. For additional resources on the RWA token, please head to [the official re.al documentation](https://docs.re.al/rwa-token/overview).
## A few keys points about RWA
The RWA token is the migrated version of the TNGBL token, the governance token of the Tangible project, and is now solely focused on the re.al chain activity and ecosystem. One of the key points of RWA is that the total number of tokens is already reached. It's been set to 33,300,000 tokens when re.al launched, and was the actual number of emitted TNGBL tokens. This means that there will never be more tokens than the current supply. In other words, RWA is not impacted by any inflation.
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Not only RWA is not inflationary, but there are burning mechanisms that make it a deflationary token. In facts, as of writing this page (July 2024) more than 360,000 tokens have already been burnt from the total supply.
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Another amazing metrics about RWA is the amount of tokens that is currently locked. Indeed, when you stake your RWA tokens to earn chain's revenue, the token is taken out of circulation so that staked tokens cannot be sold. And as of writing, 94.26% of the total supply on re.al is currently locked. In other words, less than 6% of all 33 millions tokens is available to buy. You can see the actual metrics in real time on [the re.al metrics page](https://www.re.al/app/rwa-metrics).
## Staking RWA tokens
As mentioned above, you can either keep your RWA tokens liquid, or you can stake them for veRWA (**v**ote-**e**scrow RWA), which
* locks the underlying RWA token for a determined amount of time
* grants you voting power on chain's governance
* grants you a share in the chain's revenue
By locking your liquid RWA into a veRWA, you will have the possibility to chose for a lock period with a minimum of 1 month and a maximum of 3 years. The weight of your voting power and share revenue will be directly linked (in a linear manner) to the amount of time you lock your tokens, with
* a voting power of 2% for a 1 month lock period
* a voting power of 100% for a 3 years lock period
Locking RWA into a veRWA NFT with different amounts and lock time
The veRWA token is an NFT (**N**on-**F**ungible **T**oken) that you can use to vote on improvement proposals for the entire chain, and claim chain's revenue (see the article on veRWA revenues for more details, or [the official RWA tokenomics](https://docs.re.al/rwa-token/rwa-tokenomics)). However, unlike most veTokens, the veRWA **will not vest** unless you move it to the vesting contract. This means
* Once you choose the lock period of your token, they remain locked for that amount of time infinitely. As an example, if you lock your token on the 1st of August for 1 month and do not put it in the vesting contract, on the 1st of September, it will still be locked for 1 month with the same voting power.
* As long as your veRWA token is locked, you get its associated voting power and revenue share of the chain's revenue.
* If you want your token to start vesting, you need to move it to the vesting contract, but then your voting power and revenue share falls to 0%. See more about the vesting contract in [the dedicated section](#vesting-verwa-tokens).
You can always manage your liquid RWA and lock into RWA using the official re.al digital application here:
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You can manage your veRWA in a few ways:
* lock RWA into a veRWA NFT
* merge/split 2 different veRWA NFTs
* extend the lock duration if your veRWA isn't max locked
* put it in the vesting contract
* transfer it to another address
However, it is currently impossible to add liquid RWA to an existing veRWA.
{% endhint %}
## Vesting veRWA tokens
Putting your veRWA in the vesting contract is the only way to get back liquid tokens without paying any penalty for unlocking early. By putting your veRWA token into the vesting contract you will
* accept your voting power and revenue share go to 0%
* start unlocking your veRWA token for the entire lock period, meaning you will have to wait the entire unlock period before being able to claim your tokens
* make sure you get all the tokens that are locked in your veRWA at the end of the locked period
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The team is aware that the Vesting tab shown above is sometimes not showing as the popup is not wide enough. This bug should be fixed soon, but you can click at the very right of the tab section and access the vesting options.
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## Unlocking early your veRWA tokens
If you are not willing to wait the entire unlock period by putting your veRWA into the vesting contract, you can also unlock the underlying RWA tokens by unlocking early, which will
* apply a penalty that will burn (destroy) part of the RWA tokens locked in the NFT
* send the rest of the RWA tokens to your wallet
In the same way the voting power and revenue share is linear based on the lock time of the veRWA, the penalty is also linear with the max lock time resulting in a max penalty of 50% of the tokens. Below, you fill find some examples of what would the result be if you had 200 tokens locked in a veRWA:
| veRWA LOCKED | LOCK REMAIN | PENALTY | RWA RECEIVED | RWA BURNED |
| ------------ | ----------- | ------- | ------------ | ---------- |
| 200 | 36 months | 50% | 100 | 100 |
| 200 | 24 months | 33.33% | 133.33 | 66.67 |
| 200 | 12 months | 16.67% | 166.67 | 33.33 |
| 200 | 6 months | 8.33% | 183.33 | 16.67 |
| 200 | 1 months | 1.39% | 197.22 | 2.78 |
As another example, if I wanted to unlock the same veRWA that is shown in the animation from the vesting section, here are the info I would get when managing my NFT:
My veRWA holds 203.42 RWA and my voting power is 203.42 veRWA, meaning that I have 100% voting power, which is another way of saying that I used a max. lock of 3 years on this NFT. So if I was to unlock the tokens early, I would have to pay a 50% penalty, which is shown as
* the Unlock Penalty of 101.71 RWA
* I will receive 101.71 RWA
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The unlock penalty that burns RWA tokens is the main mechanism that makes RWA a deflationary token. You can always go to [the metrics section of the re.al dApp](https://www.re.al/app/rwa-metrics) to see the amount of tokens that have been burnt over time.
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## Token price and volatility
The RWA token is a pretty volatile token. In facts, even if the token is fully emitted and has deflationary mechanism, as well as benefits for locking the token, its price is still depending of offer and demand. And if new users from the re.al chain can find it interesting to buy, hold or lock the RWA token because they think the entire ecosystem has a great future, some investors who bought the TNGBL token a few years ago and are still at a substential gain, may be willing to sell their tokens, or even unlock their NFTs to sell the underlying tokens and still be profitable.
In other words, make sure that if you want to buy the token, you understand the risks. In facts, this guide is absolutely not an endorsement of the token, and is just a simple presentation describing how you can manage your RWA and veRWA tokens.
Finally, if you are still willing to buy or sell your RWA tokens, the only place is currently on [Pearl exchange](https://www.pearl.exchange/trade).
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Pay attention that the RWA token has an embedded fee when you buy or sell them. This fee is implemented to "protect" users who chose to hold or lock their tokens instead of selling them, and the fee is returned to veRWA holders.
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## Small note on the RWA points program
The [RWA points program](/re.al-community/re.al/the-rwa-points-program.md) is most probably the best way to accumulate RWA tokens. Any action on the re.al chain will earn you points, and at the end of the point season you will be able to exchange 1,000 points for 1 RWA token. The RWA tokens that are granted during the points seasons are belonging to the re.al team and are not additional tokens minted. In other words, they are part of the 33 millions total supply. They will be distributed int he form of veRWA locked for 1.5 year, meaning you will receive an NFT that will grant you voting power and revenue share with a 50% weight.
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Some important note for points season 1: creating a new veRWA NFT with your liquid RWA will grant you a points bonus which will result in even more rewards at the end of the season.
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