# Introduction

🚀 The cryptocurrency space offers immense opportunities but is fraught with volatility and risk.  **Degen Capital** ($DGC) was created to harness the potential of early-stage, high-growth projects while mitigating risks through a structured, innovative investment approach.

Degen Capital operates as a decentralized cryptocurrency hedge fund, leveraging **flywheel tokenomics** to create a sustainable and deflationary ecosystem. A **4% transaction tax** on all $DGC trades supports the project by funding strategic investments, team operations, and liquidity growth, aligning with the long-term interests of token holders.

The ecosystem is enriched by two critical components:

1️⃣ **Exclusive Community Access Perks**: $DGC holders gain entry to our **exclusive token-gated community chat (Lodge)** and the **closed alpha feed**, delivering curated insights and high-conviction opportunities.

2️⃣ **Revenue Sharing**: The **Mr. D NFT collection** offers holders a direct stake in the fund’s investment success through proportional revenue distribution.

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By **combining profitable investments, innovative tokenomics, and community-driven initiatives**, **Degen Capital** aims to establish a robust, growth-oriented platform in the cryptocurrency space.

This whitepaper outlines the tokenomics, investment strategy, and revenue distribution mechanisms that underpin the Degen Capital ecosystem.
