$KREDO Token Utility

The $KREDO token is a protocol coordination asset, not a representation of deposited funds, ownership of liquidity, or user balances. Its purpose is to align incentives across participants who operate, secure, and evolve the Kredo authorization-based banking system.

Kredo intentionally separates:

• User interaction with money (authorization-based, token-agnostic)

• Protocol operation and governance (coordinated via $KREDO)

This separation ensures that everyday users never need to speculate, custody, or manage the protocol token to use Kredo as a financial system.

Authorization Infrastructure Staking

$KREDO is used by infrastructure participants who:

• Validate zero-knowledge authorization proofs

• Enforce spending policy constraints

• Operate liquidity fog pool controllers

• Maintain intent execution engines

Staking $KREDO signals:

• Economic commitment to protocol correctness

• Accountability for enforcing authorization rules

• Alignment with long-term system integrity

Misbehavior or incorrect verification may result in stake penalties, creating a crypto-economic security layer around authorization enforcement

Policy Activation & Advanced Authorization Modules

Certain advanced authorization features require $KREDO to activate or configure, including:

• High-throughput intent processing

• Specialized identity proof circuits

• Enterprise or regulated policy frameworks

• Custom constraint logic (time-based, purpose-based, role-based)

This creates a demand model where $KREDO functions as permission fuel for protocol-level capabilities, not as a transactional currency.

Governance Signaling

$KREDO holders participate in governance processes related to:

• Authorization standards

• Liquidity fog pool rules

• Proof system upgrades

• Risk constraints and global invariants

• Protocol parameter tuning

Governance does not control user funds. It controls:

• Which permissions exist

• How authorization logic evolves

• What constraints the system enforces

This maintains a strict boundary between policy control and liquidity custody.

Incentives for Ecosystem Builders

$KREDO is used to incentivize:

• Developers building authorization-aware applications

• Identity providers integrating ZK proof systems

• Auditors verifying proof circuits and policies

• Tooling and SDK maintainers

The token aligns ecosystem growth with protocol sustainability without requiring users to interact with it directly.