# Protocol Design Kodo Exchange uses **KODO** as a utility token and **veKODO** as governance token. **KODO** is used for rewarding liquidity providers through emissions. **veKODO** is used for governance. Any **KODO** holder can vote-escrow their tokens for up to 4 years and receive a **veKODO** NFT in exchange. ### Core Mechanics The protocol is designed to enable token swaps and generate fees (from **Traders**) by attracting liquidity. Every epoch liquidity providers (**LPs**) receive **KODO** token emissions proportionally to the votes the pools accumulate. Only staked (in the protocol gauges) liquidity receive emissions. Participants can lock their **KODO** to be able to vote on the next epoch distribution of emissions, becoming **veKODO Voters**. **veKODO Voters** are rewarded (proportionally to locked amounts) for their votes with 100% of the protocol trading fees from the previous epoch and any additional voters incentives from the current epoch. Protocols on Taiko looking to incentivize liquidity can incentivize **veKODO** voters (i.e., deposit token rewards for voters of a pool) and accumulate **veKODO** to vote directly. --- # Agent Instructions: 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: ``` GET https://docs.kodo.exchange/overview/protocol-design.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.