# On-Demand $KiX Issuance Mechanism

Upon launch the number of $KIX available in the KiX [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work) will be relatively small and insufficient to cater for future demand when greater numbers of traders have been onboarded. &#x20;

Within the  [KiX Tokenomics](../kix-economy/kix-tokenomics) a total of 400 million 'on-demand' tokens are set aside to meet this demand as and when it arises.&#x20;

Over time with increased activity and demand upon the platform, the [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work) liquidity reserves will need to grow to accommodate a percentage of the 400 million 'on-demand' tokens set aside.&#x20;

<figure><img src="https://4102490893-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTezpo0wf02vRYPfzdxUK%2Fuploads%2FH6OGWyHrl5qbtbFnDaIs%2Fimage.png?alt=media&#x26;token=5043a198-7550-48e7-be4c-b6f359148597" alt="" width="563"><figcaption></figcaption></figure>

Failing to do this would result in unstainable and unrealistic inflation in the $KIX price, which would also skew the price of DAT tokens and cause slippage within the [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work).

It is essential for KiX to find the correct balance between this over inflated price characteristic, and on the other hand, an oversupply of $KIX flooding the market and depressing the price.&#x20;

Some other protocols issue their tokens in large tranches as and when they see fit or according to a purely time based schedule. As a consequence, the issuance of tokens looks like a series of steps, rather than a smooth curve. &#x20;

We believe that a continuous release of tokens to meet excess demand is more decentralized, consistent and predictable.&#x20;

{% hint style="info" %}
1 in 3 $KIX tokens purchased by Users using the KiX platform will be supplied from the 400 million $KiX On-Demand Pool. This is the primary market and can be deemed as fresh supply of $KIX issuance.&#x20;

The issuance figure will always be published, is intended to decrease over time, and will ultimately be governed by the community. &#x20;

The remaining 2 $KIX will be provided by the [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work).&#x20;

The $USDT funds realised from the issuance of $KIX tokens from the On-Demand Pool will be held by the KIX Treasury for express purpose of liquidity management.
{% endhint %}

$KIX Tokens may added to the [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work) by adding $KiX with a corresponding value of $USDT reflecting the prevailing $KIX price. This has a neutral impact on price, but the price reduces sensitivity and slippage within the [xyk AMM](https://learncrypto.com/knowledge-base/basics/amm-explained-automated-market-makers-how-they-work).

\* **PLEASE NOTE: Under regulation KiX is not offered or promoted to UK users or residents. \***
