# $SVM Token

#### $SVM Token Utilities

The $SVM token is integral to the StratoVM ecosystem, serving multiple key functions:

1. **Transaction Fees:**\
   $SVM is used to pay for transaction fees across the StratoVM network, ensuring smooth and efficient operations on the layer 2 platform.
2. **Governance:**\
   Token holders can participate in decentralized governance by voting on network upgrades, protocol changes, and other important decisions, giving them a voice in the future direction of StratoVM.
3. **Network Incentivization:**\
   $SVM will be directed as part of the edge network incentives towards ecosystem builders and the community

StratoVMs tokenomics will be designed to decentralize StratoVM and reward users and developers that contribute to growing the StratoVM ecosystem. Important technical features, such as using the native token as a gas token or implementing other crucial protocol upgrades, are subject to community governance to ensure a fully decentralized system.<br>

<figure><img src="/files/ACMOQKXpn3icFeEeXzMf" alt=""><figcaption></figcaption></figure>


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