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

# OY Token

At OmniYield, our mission is to build a decentralized finance platform that is community-driven and designed for long-term success. The OY token is central to this vision, with tokenomics crafted to provide long-term benefits and drive growth. 

### Core Token **Utility** <a href="#utility" id="utility"></a>

The $OY token serves several key functions, primarily through its locked form ([veOY](/tokenomics/veoy-locked-oy.md)):

1. [**Protocol Fee Sharing**](/tokenomics/veoy-locked-oy.md#earn-50-of-protocol-revenue): veOY holders who vote for $OY emissions collect 50% of the fees from the vaults they vote for. This means that voters collectively receive 50% of all fees generated on OmniYield.
2. [**Incentivizing Deposits**](/tokenomics/veoy-locked-oy.md#direct-oy-token-emissions-from-vested-ecosystem-incentives): $OY tokens are distributed as additional rewards to users who deposit assets into OmniYield vaults. This boosts their overall yield on top of the premium real yield already generated by their deposited assets.
3. [**Governance Rights**](/tokenomics/veoy-locked-oy.md#governance-power): OmniYield grants veOY holders governance rights over the platform. This empowers the community to make critical decisions, including but not limited to:
   * Directing $OY emissions: Voting on how $OY rewards are allocated to various vaults (gauge weight votes).
   * Influencing protocol development: Proposing and making decisions on future protocol upgrades, new features, new chain deployments, and strategic partnerships.
   * Managing the DAO Treasury: Participating in decisions regarding the DAO treasury and strategic funds.
   * Steering overall strategy: Having a say in the long-term direction of OmniYield.

{% hint style="info" %}
[veOY](/tokenomics/veoy-locked-oy.md) stands for vote-escrowed OY, representing OY tokens locked for voting in the OmniYield DAO. The terms “locked OY” and “vote-escrowed OY” are used interchangeably in the OmniYield ecosystem.
{% endhint %}

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