# Production (Time Tokenization)

TIME is obtained under production (mining), where anyone can produce it from an EOA or a smart contract address. To do so, the user pays a one-time variable fee to the protocol and is then enabled to initiate the production of tokens in the way they naturally exist. The activation fee can be paid using native or TIME tokens, where TIME tokens used for activation are burned after the procedure.

While token production is based on demand, the quantity of tokens generated is determined solely by the time that has passed between two interaction events with the smart contract of the protocol. Here's an example to illustrate this process: once an address is activated, a user can request the production of tokens for that particular address. The number of tokens generated will be proportional to the time that has elapsed since the activation event. Subsequently, each further request for token production will generate an amount corresponding to the time that has passed since the last production event. This mechanism remains consistent throughout the process.

<figure><img src="/files/JGGwXArGLwHxERtSaa4Z" alt=""><figcaption><p>Example of a frame used for TIME production.</p></figcaption></figure>


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