> For the complete documentation index, see [llms.txt](https://nexchain.gitbook.io/nexchain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nexchain.gitbook.io/nexchain/tokenomics/governance-and-utility.md).

# Governance and Utility

NEX serves as the network's native asset for transaction fees, access to AI risk-intelligence features, staking, and governance participation. Holders can stake NEX to contribute to network security and earn rewards, and take part in on-chain governance proposals. As the network decentralizes, governance rights expand the community's role in protocol decisions — including protocol upgrades, parameter adjustments, and ecosystem development.

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Nexchain's tokenomics model balances short-term liquidity with long-term sustainability through structured allocation, transparent vesting, and a buyback-and-burn program funded by 25% of network gas and AI fees. The phased release schedule is designed so that public allocations complete before insider unlocks begin.