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

# Token Utility

#### Tier-Gated Access <a href="#id-00363f0f-1586-4d36-a6e4-fbb9db8eaa89" id="id-00363f0f-1586-4d36-a6e4-fbb9db8eaa89"></a>

The primary utility of $RAX is gating access to protocol features. The tier system reads the user's on-chain token balance to determine access level. Features unlock progressively as described in the Token Overview.

#### Vault Fee Alignment (Planned) <a href="#id-0b9c8f7d-6cf8-43fa-b6af-3a80aed5bb96" id="id-0b9c8f7d-6cf8-43fa-b6af-3a80aed5bb96"></a>

The vault charges management and performance fees denominated in USDC. Future governance may direct a portion of vault revenue to token holders through buyback, burn, or redistribution mechanisms. The specific mechanism will be determined through governance.

#### Governance Participation (Planned) <a href="#id-5303abbc-9704-43f6-a9a9-8729068ac7c2" id="id-5303abbc-9704-43f6-a9a9-8729068ac7c2"></a>

$RAX tokens will grant participation rights in governance decisions. Token holders may propose changes, vote on protocol parameters, and participate in strategic decisions. Governance rights may require staking or lock commitments.

#### Non-Speculative Positioning <a href="#id-3a6272d6-ea45-43cc-b8ca-a4339677341e" id="id-3a6272d6-ea45-43cc-b8ca-a4339677341e"></a>

The $RAX token is designed as a utility and coordination mechanism embedded in the protocol. It aligns access, usage, and incentives without positioning the token as a financial instrument.