> For the complete documentation index, see [llms.txt](https://docs.evedex.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.evedex.com/tokenomics/tokenomics-overview/token-utility-and-usage.md).

# Token Utility & Usage

<details>

<summary>Contents</summary>

[#usdeve-token-distribution-and-circulation](#usdeve-token-distribution-and-circulation "mention")

[#usdeve-staking.-dao-and-governance](#usdeve-staking.-dao-and-governance "mention")

[#optimistic-governance-and-evedex-council](#optimistic-governance-and-evedex-council "mention")

</details>

The foundation of the EVEDEX ecosystem is the utility token $EVE. $EVE will be used for fee payments, staking, protocol governance. Its functionality may expand as new opportunities for its application in the ecosystem emerge.

## $EVE Token Use

Within the EVEDEX ecosystem, the $EVE token is used:

* **For protocol fee payments.** Users can pay fees using the platform's token instead of USDT and receive a discount.
* **For fee discounts**. Users holding $stEVE can reduce the fee level based on the amount of staked $stEVE in their balance.
* **For additional platform functionality access**. Copy trading, advanced trading features, access to new products, educational materials, and other content available to protocol users depending on the amount of $stEVE in their balance.
* **For staking and gaining voting rights** in the Governance Protocol (DAO).
* **For receiving rewards from the Achievement Badges** Program Pool distribution.
* **For earning rewards** by providing liquidity on the decentralized exchange (swap).

## $EVE Staking. DAO & Governance

The EVEDEX ecosystem can be divided into three main components:

* **EVEDEX Protocol**: A system comprising L3 solution, along with all additional solutions and smart contracts, enabling futures trading and integration of additional functionality.
* **EVEDEX Interface**: A centralized web interface providing users access to the Protocol, supported by the Protocol Team;
* **EVEDEX Governance System**: A decentralized governance system, including technical solutions, guidelines, and the DAO Constitution, allowing $EVE token holders to govern the protocol.

EVEDEX protocol governance uses a hybrid Delegated Vote Escrow model. To gain voting rights in DAO decisions, users must stake their liquid $EVE tokens in a special smart contract. This contract issues an equal amount of non-transferable $stEVE tokens in return. These $stEVE tokens enable participation in the governance system. Users can also delegate their voting rights to form the EVEDEX Council.

## **Optimistic Governance and EVEDEX Council**&#x20;

EVEDEX uses an optimistic governance model to maintain an optimal balance between decentralization and development speed. The EVEDEX Council, initially formed from team members and later expanded to include public advisors, partners, and major $stEVE stakers, will manage the operational processes of protocol development.

Decisions made by the Council, in accordance with the DAO Constitution, are approved by default and enter a timelock contract for a waiting period. During this period, EVEDEX DAO participants can veto the decision's execution. If vetoed, the decision is returned for revision with a justified rejection. The Council can then resubmit the corrected decision for implementation.

<figure><img src="/files/7QtgCaV28sxOfVcBVxHb" alt=""><figcaption></figcaption></figure>


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