> For the complete documentation index, see [llms.txt](https://docs.virtuswap.io/virtuswap-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.virtuswap.io/virtuswap-documentation/virtuswap-basics/usdvrsw-token/fees-and-incentives.md).

# Fees and Incentives

Economic incentives and fees (both combined: “Incentives”) comes in the form of Trading Fees in the pools participating in the trade; and VRSW emissions allocated to pools to incentivize liquidity provision via a combination of our proprietary AI-optimization engine with VirtuSwap DAO decision making.

* Part of the Incentives will be given to liquidity providers, based on a pro-rata calculation of the relative holdings in the pool, represented by the amount of LP tokens held by the liquidity provider.
* Another part of the Incentives will be allocated to liquidity providers who staked or locked their VRSW tokens (“Boost”).

In the future, the VirtuSwap community via VirtuSwap DAO, can decide to allocate part of the incentives directly to VRSW stakers or lockers; or other ecosystem participants, as the community see fit.

Initially, all pool fees will be distributed to the liquidity providers of the pool which was involved in the trade; and VRSW emissions rewards will be distributed to liquidity providers who staked or locked VRSW tokens. The higher the amount of staked/locked VRSW tokens; and the longer the locking or staking period is - the higher VRSW emission the participant will get.

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For a deeper understanding of Fees and Incentives in VirtuSwap, read our tokenomics Medium article, [available here](https://medium.com/virtuswap/virtuswap-tokenomics-cd9d8c28fb30).


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