> For the complete documentation index, see [llms.txt](https://kredopay.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kredopay.gitbook.io/documentation/usdkredo-token-utility.md). # $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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://kredopay.gitbook.io/documentation/usdkredo-token-utility.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.