# Tokenomics The native digital cryptographically-secured fungible token of the Hydra platform (ticker symbol $HDRA) is a transferable representation of attributed governance and utility functions specified in the Hydra platform, and is designed to be used solely as an interoperable utility token on the platform. When developing $HDRA tokenomics, one of our main goals is to avoid the dump effect which often associated with other tokens when they have downtime in their deal flow. This is why we’ve decided to put emphasis on the broad system of incentives to hold and utilize $HDRA tokens. As previously mentioned, $HDRA stakers may earn $HDRA rewards and weekly airdrops coming from our multi-asset staking feature, in exchange for their various beneficial contributions/actions which we call PoS (Proof of Swap). After the successful launch of Hydra project and platform, 1%–3% of its total tokens will be set aside in the reward pool to incentivize continuous interactions. We will use airdrops as incentive mechanisms to subsidize token rewards. To further increase the demand for our core token, 20% of our transaction fees will be dedicated to the burning of $HDRA. Additional buying pressure will come from the bridge to Anchor protocol, where 5% (5% of whatever yield is provided) of the yield on staked $HDRA will be allotted for the purpose of burning $HDRA tokens. This will lead to stability of our token, which benefits investors long term. Governance (Please see hydra.foundation for more information) $HDRA will allow holders to propose and vote on on-chain governance proposals to determine future features and parameters of the Hydra platform, with voting weight calculated in proportion to the tokens staked (the right to vote is restricted solely to voting on features of the Hydra platform). For example, they may vote on the specific number of tokens required for each gamified tier system, partnerships, or the recipients of charitable distributions. Liquidity Staking To provide easy access to $HDRA and promote ecosystem growth, users will be incentivized to play the role of liquidity providers and stake their digital assets into various decentralized market making pools to provide the necessary liquidity for transactions. These users would be rewarded with additional $HDRA for their contributions. By distributing $HDRA in this manner, it ensures that the governance token will be distributed primarily to key network contributors and allow them to have a say in protocol parameters. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.hydraswap.xyz/white-paper/hydra-swap-whitepaper-1.0/hydra-token/tokenomics.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.