> For the complete documentation index, see [llms.txt](https://validnet.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://validnet.gitbook.io/docs/tokenomics/tokenomics/utility.md).

# Utility

* **Staking for Validation** – Validators must stake $VAT tokens to participate in validation tasks. Staked tokens act as collateral that can be slashed for dishonest or low-quality work, ensuring economic security and network integrity.
* **Validator Rewards** – Validators who submit accurate and consensus-aligned results are rewarded in $VAT. Rewards are distributed from the task pool based on performance, uptime, and participation frequency.
* **Anchor Economy** – Developers who create Memory Anchors earn $VAT royalties each time their logic is used in a validation task. This incentivizes high-quality Anchor creation and fosters a self-sustaining marketplace for trust logic.
* **Governance Participation** – $VAT token holders can propose and vote on key protocol upgrades, economic parameters, anchor standards, and system improvements. This ensures that the protocol remains community-driven and adaptable over time.
* **Ecosystem Growth & Incentives** – A portion of $VAT is allocated to ecosystem grants, partnerships, and early support programs aimed at accelerating adoption, use case development, and community expansion.