> For the complete documentation index, see [llms.txt](https://docs.nodo.xyz/public/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nodo.xyz/public/governance-and-incentive-programs/utility-and-governance-token-usdnodoai.md).

# Utility & Governance Token: $NODOAI

<figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcfK2Rr3VOqPRDpukr0QWc-NpJd-dqmjZx_N8xWm7RmYSA3fljIheCsq8J88ew0nZoVVF5wmt3Yy0lhLBOGPtn1XgnAoGBk4A_dzAKkvPC2KwSeW0bAoS4Gpgtz56XVDxhqT0Rhfg?key=7-HNZ3Di6QYq9DVX1rUt1w" alt=""><figcaption></figcaption></figure>

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.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.nodo.xyz/public/governance-and-incentive-programs/utility-and-governance-token-usdnodoai.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
