# Tokenomics Kodo Exchange employs a dual-token system for its utility and governance: * **KODO** — ERC-20 utility token of the protocol * **veKODO** — ERC-721 governance token in the form of a tradable NFT (non-fungible token) Liquidity providers (LPs) are rewarded with **KODO** tokens, distributed at the end of each epoch, which lasts **7 days**. **KODO** holders can choose to vote-escrow their tokens for a period ranging from **1 week to 4 years**, receiving the corresponding amount of **veKODO** (also known as a Lock or veNFT) in exchange. The longer the vesting time, the higher the **veKODO** voting power obtained, with the linear conversion rule as follows: * Lock 100 **KODO** for 4 years results in 100 **veKODO**, equating to the voting weight of 100 **KODO**. * Lock 100 **KODO** for 1 year results in 25 **veKODO**, equating to the voting weight of 25 **KODO**. Over time, the power of **veKODO** gradually diminishes. Holders can enhance their **veKODO**'s power at any time by extending the lock period or adding more **KODO** tokens to their stake. Voters with **veKODO** share the total trading fees from the previous epoch and all bribes from the current epoch as rewards. The distribution proportion is aligned with their voting percentage in the trading pairs. The protocol's trading fees set at 0.2% for non-stable pairs and 0.02% for stable pairs. These rates can be adjusted by the team's multisig wallet. This structure aims to incentivize long-term participation and governance engagement within the Kodo ecosystem, aligning the interests of LPs, stakers, and voters towards the sustained growth and stability of the exchange. --- # 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/tokenomics.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.