# Source: https://docs.carv.io/carv-token/utility.md

# Utility

## **CARV Token Utility and Purpose**

{% hint style="info" %}
$CARV Token Contract Addresses:

* Ethereum: 0xc08Cd26474722cE93F4D0c34D16201461c10AA8C
* Base: 0xc08Cd26474722cE93F4D0c34D16201461c10AA8C
* Arbitrum One: 0xc08Cd26474722cE93F4D0c34D16201461c10AA8C
* Solana: AFJtnuqGMaj5jAo6Pwxo28r1f7XAXXTSA8q3rG3q8b4A
  {% endhint %}

$CARV is a governance token of CARV Ecosystem, now upgraded to Governance Token and Liquidity Token of SVM Chain, including but not limited to the following application scenarios:

* Gas Token, used to pay for the network computing costs of nodes in the blockchain;
* Liquidity Pairing, AI agent token will be paired with the $CARV token in its respective liquidity pool;
* Payment Currency
  * Retail users' premium utilities in CARV ecosystem, e.g., gas payment for multi-chains, gaming assets purchases, etc.
  * AI Agents and projects gated access to continuous utility of CARV protocol, e.g., accessing holistic and unified users' profiles, etc.
* Incentive to bootstrap CARV protocol – the modular data layer, e.g., data owners, providers, consumers
* CARV can be converted to veCARV(s) with 1:1 ratio through staking

## **veCARV Token Utility and Purpose**

veCARV stands for voting-escrow CARV, is a non-transferable token. veCARV is mainly used for:

* CARV Protocol governance (voting & delegation)
* Incentivizes node operators who secure and support the network
* veCARV can be redeemed for $CARV with varying rates and waiting periods, which is explained in more detail in The Redemption Process in whitepaper

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### **Redemption of veCARV into CARV**

VeCARV conversion to CARV requires an unlocking period.

The redemption rate varies for different unlocking periods, with longer unlocking periods resulting in higher redemption rates, reaching up to 100%.

Users are required to pay a network channel fee of 1$ CARV each time they initiate a Redeem.

Users can cancel redemption requests at any time without being fined, including after the unlock period is over if the redemption has not been claimed. period is over if the redemption has not been claimed.

<table data-header-hidden><thead><tr><th width="478"></th><th></th></tr></thead><tbody><tr><td>Redemption Duration (Days)</td><td>Rewards (CARV)</td></tr><tr><td>15</td><td>25%</td></tr><tr><td>90</td><td>60%</td></tr><tr><td>150</td><td>100%</td></tr></tbody></table>

***Once veCARV enters the redemption period, it will no longer be eligible to participate in governance voting.***

After the redemption process of veCARV, the remaining (if any) veCARV will be converted to CARV and enter the CARV treasury to maintain network operation or proposal to burn, which makes CARV deflationary.