> For the complete documentation index, see [llms.txt](https://jungleos.gitbook.io/j/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://jungleos.gitbook.io/j/tokenomics/cm2-token-basics/asset-backing.md).

# Asset Backing

**100% Backed by Physical Land**

One of the defining characteristics of the CM2 Token is that it is fully backed by ownership of physical land. This innovative approach means that no new token will ever be created unless a corresponding amount of physical land is purchased to support it. This design ensures that the token maintains intrinsic value and scarcity, aligning its digital existence with tangible, real-world assets.

**Land Acquisition and Token Issuance**

When a piece of land is purchased or joins the JungleOS Foundation, an equivalent amount of CM2 Tokens is issued and subsequently offered for sale on the decentralised finance (DeFi) market. This process maintains the backing ratio of the token, guaranteeing that the CM2 Token remains fully collateralized by physical land holdings.

**Token Burning upon Land Sale**

In the event that physical lands are sold, the corresponding CM2 Tokens will be permanently burned. This mechanism ensures that the token supply decreases when assets backing it are reduced, thus preserving the token's value and scarcity.