# Tokenomics FAQ

## **What is the utility of the DEFE token?**

DEFE is a governance token and a utility token.

In order for a DEFE holder to receive both governance and utility benefits, DEFE must be locked for a period of time and converted to veDEFEs.

## **What is veDEFE?**

**veDEFE** has two main uses: **Voting** and **Earning**.

#### **Voting**

DAO members who holding veDEFEs are entitled to participate in all governance proposals in the DefeDAO.

DEFEDAO Governance:

#### **Earning**

To earn crypto income that is collected from crypto loans & transfer fees.\\
