> For the complete documentation index, see [llms.txt](https://mmfinance.gitbook.io/hakuna-matata/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://mmfinance.gitbook.io/hakuna-matata/protocol/tokens.md).

# Tokens

##   ![](/files/MFexepwo8Mye92yJcHZQ) HKN- Hakuna Token

```
0xa60943a1B19395C999ce6c21527b6B278F3f2046
```

**HAKUNA** token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain Hakuna Matata's peg to 1 **SVN** token in the long run. 

### **How the Algorithmic Peg works?**

**When HKN is below Peg**

When **HKN** price is below **SVN** Current Market Price (Peg), token holders can purchase HBOND and **HKN** will be **burnt** to reduce the circulating supply when users redeem **HKN** tokens with a 1:1 ratio.

**When HKN is above Peg**

When **HKN** price is above **SVN** Current Market Price (Peg), the token supply will have to expand to push it back down to Peg and the contract will allow the redemption of the **HBOND**.

When the price of **HKN** continues trading above the **SVN** Current Market Price (Peg) after bond redemption, the contract mints an appropriate amount of new **HKN** and this will be **distributed** to the **MTT** stakers.

{% hint style="warning" %}
Note that **HKN actively pegs via the algorithm**, it **does not mean** it will be valued at 1 **SVN** all times as it is not collaterized . **HKN** is not to be confused for a crypto or fiat-backed stablecoin.
{% endhint %}

## ![](/files/JOGs3crAVLLXxCBBPIhv) MTT- Hakuna Share

```
0x388c07066AA6cEa2Be4db58e702333df92c3A074
```

Hakuna Shares (**MTT**) are one of the ways to measure the value of the Savanna Protocol and shareholder trust in its ability to maintain **HKN** close to peg. During epoch expansions the protocol mints **HKN** and distributes it proportionally to all **MTT** holders who have staked their tokens in the River.

**MTT** holders have voting rights (governance) on proposals to improve the protocol and future use cases within the Savanna finance ecosystem.

**MTT** has a maximum total supply of 30,000 tokens distributed as follows:

* 5% go to METF vested over a 1 year
* 25% go to DAO vested over a 1 year
* 70% go to Community vested over a 1 year

## ![](/files/bORNjNFrrAGFSDXwUPaw) HBOND- Hakuna Bond

```
TBA
```

Hakuna Bond (**HBOND**) main job is to help incentivise changes in **HKN** supply during an epoch contraction period. When the TWAP (Time Weighted Average Price) of **HKN** falls below 1 **SVN**,  HBONDs are issued and can be bought with **HKN** at the current price. Exchanging **HKN** for HBOND burns **HKN** tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 **SVN**. These HBOND can be redeemed for **HKN** when the price is above peg in the future, plus an extra incentive for the longer they are held above peg. This amounts to inflation and sell pressure for **HKN** when it is above peg, helping to push it back toward 1 **SVN**.

{% hint style="info" %}
Contrary to early algorithmic protocols, HBOND do not have expiration dates. 
{% endhint %}

All holders are able to **redeem** their **HBOND** for **HKN** tokens as long as the Treasury has a positive **HKN** balance, which typically happens when the protocol is in epoch expansion periods.