# Token Utility

### 2.1 Value Proposition

The YOYO token’s primary value lies in its deep integration into the AI-driven ecosystem, serving as both a utility and governance asset. By holding and utilizing YOYO tokens, users gain access to a wide array of benefits that enhance their trading experience and optimize investment decisions. The token ensures seamless interactions within the Yo-Yo.ai platform, allowing users to engage with AI models, reduce fees, participate in platform revenue-sharing mechanisms, and access exclusive data-driven market insights. As the ecosystem grows, the token's role will expand, further embedding it within the platform’s AI-powered financial tools and governance framework.

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<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdy5JqOKHcsMwN03mrtbW8htucUCJ7wx59ewQDP_J5PUrrEQQVhkJrZxtxrDQRx9U0bEB87BGe8ZeftXVkNIPNeqLOjdBN2ppsMuATtTT7yCWVZJtj-B42bSwqMjAVRK_4S4VvIVA?key=k6fyqQXYdxnSkff88MSrq7m2" alt=""><figcaption><p>Diagram 1: YOYO Token and Vault Revenue Flow</p></figcaption></figure>

### 2.2 Incentives

Token incentives fall into three primary categories that prioritize token holders actively participating in the Yo-Yo.ai ecosystem. Users, stakers and liquidity providers contribute to network security, growth and liquidity, reinforcing the stability of the ecosystem.

#### Users

* Strategic revenue share mechanisms may be implemented to optimize vaults, including tiered incentives based on the duration and volume of vault liquidity contributed by users, encouraging sustained participation and engagement.
* Early adopters of the Yo-Yo vaults will receive a ‘Genesis distribution’ to reward users who contribute to trading volume. The distribution will be proportional to vault users and the snapshot date and review period will be unknown until completed. Quadratic distribution may be implemented to further disincentivize whales to excessively accumulate the YOYO token for an unfair advantage, thus increasing the likelihood of more genuine users and greater decentralization.

#### Stakers

* Staking YOYO tokens provides multiple benefits, including access to premium AI tools, passive income revenue share, and governance participation.
* In the future, a staking-based tiered access model will be implemented, allowing different levels of engagement and exclusive product access based on staking thresholds such as amount and duration, ensuring long-term alignment between users and the ecosystem.
* Users can stake YOYO tokens to access different tiers of AI-driven analytics and trading strategies, with higher staking amounts unlocking more advanced features such as real-time predictive analytics.
* Longer staking periods yield higher rewards, exclusive features, and increased governance influence, allowing participants to have a greater say in the direction of the platform. Additionally, long-term stakers may receive priority access to AI-generated insights, early product releases, and potential airdrops or bonus rewards to further incentivize sustained engagement.

#### Liquidity Providers

* To ensure deep market liquidity, LPs are incentivized with fee-sharing mechanisms and yield farming opportunities. By providing liquidity, LPs help maintain stable trading conditions and reduce slippage across decentralized exchanges. Additionally, strategic revenue share mechanisms may be implemented to optimize automatic money markets, including tiered LP incentives based on the duration and volume of liquidity provided.
* In addition to revenue share, liquidity providers may receive governance benefits, allowing them to have a say in platform upgrades related to trading and liquidity management.
