> For the complete documentation index, see [llms.txt](https://kerneldao.gitbook.io/litepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kerneldao.gitbook.io/litepaper/usdkernel-tokenomics.md).

# $KERNEL Tokenomics

Kernel token ($KERNEL) is the common governance token for the Kernel, Kelp LRT and Kelp Gain ecosystems and it will play an integral and unifying role in the ecosystem.

$KERNEL has its total supply capped at 1 Billion tokens and a user-centric token distribution model with the majority of the token supply (55%) allocated to users and the broader community.

### Token Distribution <a href="#cb7ss4o9f5y5" id="cb7ss4o9f5y5"></a>

Total Supply: 1 Billion

Distribution: Refer to illustration

<figure><img src="/files/WEbni7LzdH7Hy2jtFA5C" alt=""><figcaption></figcaption></figure>

### Token Utility <a href="#j0lpicif2slh" id="j0lpicif2slh"></a>

$KERNEL will have several utilities across the Kernel and Kelp ecosystem products. Below are key utilities for the $Kernel token:

1. **Kernel shared security:**
   1. Staked $KERNEL to be used as economic security for applications building on Kernel platform
2. **Slashing** **Insurance**:
   1. Staked $KERNEL tokens to provide insurance against any rsETH slashing events and earn a share of protocol rewards in return
   2. Staked $KERNEL tokens to provide insurance against any slashing events on Kernel platform and earn a share of protocol rewards in return
3. **Governance**:
   1. Kernel platform: Participate in all governance decisions related to Kernel platform, fees, slashing conditions etc.
   2. LRT & Gain: Participate in protocol governance by voting on AVS selections & rebalances, operator related proposals, platform fees and more.