# $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.