> For the complete documentation index, see [llms.txt](https://arganodex.gitbook.io/argano-ecosystem/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arganodex.gitbook.io/argano-ecosystem/ago-governance-token.md).

# AGO - Governance token

Utility and usage in the ecosystem

## Argano protocol is presenting its own token, built according to the ERC - 20 standards which are supported within the Polygon Network.

At first, AGO tokens can be owned by all types of investors and community members after participating in the few stages of the token sale event with a certain allocation per person.

{% hint style="info" %}
**The tokenomics and further token distribution can be found in the** [**relevant section**](/argano-ecosystem/tokenomics.md#agonomics-and-initial-distribution)**.**
{% endhint %}

As with the stock market and share prices on the one hand, and the cryptocurrency market and token prices, on the other hand, we should understand the performance of the project or company using some indexes. The first glance of the interested investor should fall on the following financial indicators and some simple things, to be able to make a purposeful investment decision and, as a result, to get some benefits from it:

1. Market capitalization.
2. Trading volume.
3. Circulation supply of the underlying asset.
4. The asset liquidity.
5. Development history of the project.
6. The main idea of ​​the project, its feasibility, utility and ability of the implementation.
7. Transparency in front of the community.

In our case, Argano is looking for innovations and gradual development of decentralized finances, removing from this scheme such a category as a centralized bank. DeFi is a confident future, without any intermediaries and regulators, lending and borrowing restrictions, huge international money transfer fees and mandatory identity confirmation.

Therefore, returning to the token price, the Argano team considers that the **AGO** token will fully reflect the level of growth of the protocol, which will be supported by the performance of the Argano ecosystem.

**AGO** native token is a utility token of the Argano ecosystem and it is ready to become an integral and vital component of the structure of the platform and, in addition, to provide a clear benefit for all stakeholders and participants:

* **AGO** is a reward token of the main liquidity pools and staking smart contracts during the liquidity mining phase;
* **AGO** is designed to lower trading fees on the Argano DEX for the token holders;
* **AGO** token implementation has a direct effect on the redeeming fee, which is configured to `0.4%` as a basic value but can be decreased to `0.2%` just by holding the Argano governance token on the user's wallet during the redeeming process.
* **AGO** is a governance token of the Argano protocol, which reflects the right to vote and the power of voting through the Snapshot platform. Future changes in the protocol and the implementation of the new features, logic, and calculations will be carried out through a kind of election, which is available only for the token holders.

Moreover, our team is not a fan of the one-day “food projects” that attract newcomers with unsubstantial high yield returns without any single understanding of preserving the value. Most of these projects still work on the old-fashioned ideas of Ponzi schemes.

To prevent token price inflation, Argano will practice different ways, including the Buyback & burn strategy and implementation of the lower trading fees for the token holders on the upcoming Argano DEX. Besides, AGO’s total supply has a limit of `65,000,000` tokens and this number is fixed and could not be increased. In this way, all the above features are designed to support the Argano utility token and encourage the token holders.

## Buyback & burn

To make AGO valuable and rare of its kind, the Argano team has a certain plan of decreasing the total supply of the AGO tokens up to ***30%*** quarterly and during the next 5 years:

![](https://565081103-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MXwPXiFA1bO13wYVD3q-887967055%2Fuploads%2Fi5c97GUU46S8GGCxeIja%2F%D0%A1%D1%82%D0%BE%D0%BB%D0%B1%D1%86%D1%8B%20\(2\).png?alt=media\&token=d31f6dc7-8a46-4ed9-b352-14157b29b8c2)

{% hint style="info" %}
Fees, accumulated from the vaults and gathered in the Treasury contract, will be used to buy AGO tokens from the open market for their further burn.
{% endhint %}