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

# Utility Token

HERA is designed as the economic coordination token of the Hera ecosystem.

Token utility will evolve together with Hera's execution, liquidity and interchain infrastructure rather than remain tied to a single staking model.

Areas under development include protocol-revenue mechanisms, governance, liquidity incentives, ecosystem rewards and product-level benefits for HERA participants.

The previous staking model was retired as part of the 2026 token transition. Future utility mechanisms will be documented here as they become active.

### Utility Areas

#### 01. Buy-Back Progress

In certain periods Hera tokens are purchased from the market at the rate determined by the platform's revenue and VaultManager's recommendations. This is used to add liquidity on AMMs and exchanges, transfer to the market-maker wallet, or sent to Staking Portal as a reward to participants.

#### 02. Stake and Earn

More Hera Tokens can be earned by staking. Rewards are funded by protocol revenue. Therefore, APY rates are variable.

#### 03. Swap Fee Reduce (soon)

Aggregator platform charges a fee for swap executions. For people who stake Hera Token, swap fee rate decreases gradually according to the stake amount and HeraPower.

#### 04. Hera DAO & Governance (soon)

Proposals will be submitted to the community to make decisions concerning the platform. Hera Token holders have voting rights. Studies on a fair management structure continue.