> 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/vrsw-utility.md).

# VRSW Utility

VRSW utility will be composed of the following:

* Staking/locking VRSW to gain additional rewards for liquidity providers. Locking or Staking VRSW tokens provide an added boost to LPs, in the form of newly minted VRSW tokens.
* Staking/locking VRSW to redeem voting rights (in the form of veVRSW) and participate in decision making of the protocol. Thus, a new veVRSW is minted every time a VRSW token is staked or locked, and the DAO voting power is derived from veVRSW holdings, relative  to the total veVRSW tokens.
* VirtuSwap DEX has a “Protocol Rewards Switch”. If and when the VirtuSwap DAO decides to turn it on, staking or locking VRSW will result in receiving rewards in the form of newly minted VRSW tokens.<br>

VirtuSwap Tokenomics is based on the three aforementioned functions, with an improvement compared to existing DEX utility structure. Importantly, it is not necessary to lock VRSW tokens in order to receive a reward boost; and incentives for both staking and locking are achieved within a single elegant mechanism.

Note that for each of the above utilities, lockers get higher rewards than stakers; and the longer tokens are locked/staked - the higher the reward boost!

\
For a deeper understanding of the reward boost calculation and VRSW Utility, read our tokenomics Medium article, [available here](https://medium.com/virtuswap/virtuswap-tokenomics-cd9d8c28fb30).


---

# 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://docs.virtuswap.io/virtuswap-documentation/virtuswap-basics/usdvrsw-token/vrsw-utility.md?ask=<question>&goal=<endgoal>
```

`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.
