# Token Economics Principle
Nitro Network has adopted a similar token model as [Helium](https://docs.helium.com/blockchain/helium-token/) which consists of successfully implemented token economic concepts such as fixed max supply, inflationary model, and burn-and-mint equilibrium.
Nitro Network uses two distinct token economics concepts to ensure NCash supply is both plentiful for network needs but also relatively scarce, with a known maximum. Read our article on [token economics](https://nitronetwork.medium.com/nitro-networks-formerly-nucleus-vision-announces-token-model-same-as-helium-burn-and-mint-61fe1412634e).
#### **1. Max Supply: **
Nitro Network will have NCash as an inflationary token with a fixed max supply. It uses a two year halving schedule to reach the max supply (targeted to be achieved in 50 years\*)
\*Number of years can be changed to maintain the demand and supply equation and to create optimum value for token
#### 2. **NOS and Burn-and-Mint Economics**
Nitro uses two units of exchange- NCash and NOS, to execute Burn-and-Mint equilibrium
1. **NCash**: NCash is native token of Nitro Network to be earned when Nitro ION Miners provide and validate wireless coverage, transfer device data over the network.
2. **NOS**: NOS are used by devices to send data on the network and for transaction fees. It is USD pegged with a fixed price. Network users buy NOS. Nitro Network burns NCash worth NOS purchase. It cannot be exchanged or converted back to USD.NOS allows users to transfer bytes of data and is USD pegged. The price of NOS is fixed and one NOS will always cost $0.00001. As mentioned above, NOS is purchased by paying in USD. After which Nitro Network burns NCash worth NOS purchase. Hence to buy 100,000 NOS, a user will pay $1. Thus, NCash worth $1 will be burnt. Let’s assume NCash current market price is $0.002. NCash = ($1/$0.002)= 500 NCash will be burnt. The market price of NCash will of course fluctuate, hence the amount NCash burnt will depend on its then current price.
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