# What is Liquidity Mining?

Liquidity mining is the process of providing liquidity to a decentralized exchange (DEX) or other liquidity pool to earn rewards in the form of additional cryptocurrency or governance tokens. Simply put, liquidity mining is a way for users to earn a steady passive income by using existing crypto assets to create more cryptocurrencies on DeFi platforms.

### **TGPT Liquidity Mining Model** 

When there is 1 person participating in mining 1000 USDT, the MiningPool smart contract will use 500 USDT (\~50%) to buy TGPT on Pancakeswap and burn it immediately. Below is the cash flow allocation ratio in the TGPT Liquidity Mining model: 

* 50% buyback and burn
* 22% Affiliate Commission
* 15% Developing the TGPT application ecosystem
* 13% of the Fund's transactions and operations 

With the cash flow model from Liquidity Mining, it will help TGPT develop very strongly. We believe this cutting-edge model will help many of our operators earn huge profits when holding TGPT.

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[Liquidity Mining Pool](https://bscscan.com/address/0x7366b32aee7f02d3bb1154c736848341566c020a)
{% endhint %}

<figure><img src="https://4187880329-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxe8pEEJiLymEufx07tjx%2Fuploads%2FarzfH8TKaJ6Vhpp7R41E%2Flq.png?alt=media&#x26;token=a23303c2-8468-429d-aa20-df75b5eb4663" alt=""><figcaption></figcaption></figure>

### Mining rewards

Mining rewards will gradually decrease with each block mined in the 75% reward pool. There are five blocks specified.

<figure><img src="https://4187880329-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fxe8pEEJiLymEufx07tjx%2Fuploads%2FGGCwZO8ceorpE3EgiVGC%2Fksk.png?alt=media&#x26;token=dce61905-2cf2-4190-89a6-e4a6b523d7e4" alt=""><figcaption></figcaption></figure>

In the long term, we will see the number of TGPT exploitations gradually decrease. Start mining TGPT as soon as possible to maximize your profits.