# Utility & Governance Token: $NODOAI

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The $NODOAI token plays a central role in the NODO ecosystem as both a utility and governance asset. It aligns protocol incentives, fuels agent operations, and redistributes value back to token holders. Its core utilities are:

#### Buyback & Burn

* 30% of protocol revenue is allocated to buy back and burn $NODOAI tokens.
* Buybacks are executed automatically via smart contracts at current market rates.
* All burns are announced and verifiable on-chain, ensuring transparency and accountability.

#### Strategy Incentive Marketplace

* $NODOAI supports a performance-based incentive model for Strategy Providers (SPs).
* SPs who exceed their vault’s benchmark return receive additional rewards.
* This creates a revenue share system that motivates alpha generation and better vault outcomes.

#### AI Market-Making Agent Fees

* Performance fees from automated market-making activities flow back into the protocol.
* The protocol also captures spreads from liquidity provision and earns position management fees.

These earnings help sustain long-term protocol incentives and fund strategic operations.