The $CHAR token is the native utility token for the vChars DAO, launched as a VRC-20 on the Vana blockchain. It powers data access, incentives, and economic alignment between contributors, consumers, and the broader vChars ecosystem.

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Token Utility

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1. Access to Data

• Data consumers pay in $VANA or other tokens to access datasets curated by vChars DAO.
• These payments are automatically converted into $CHAR via on-chain routing.
• From there:
  • 80% of $CHAR is burned, reducing supply and increasing scarcity.
  • 20% is sent to the Vana network as a protocol fee.

This creates a deflationary mechanism tied directly to real demand for data.

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2. Rewarding Data Contributors

• vChars DAO determines how to reward contributors who help grow and refine the dataset.
• Rewards may include:
  • Uploading conversations
  • Fine-tuning agents
  • Improving metadata or labeling
  • Referring active users

The core principle is simple: the more value contributors bring to the data ecosystem, the more $CHAR they can earn.

Reward methods will evolve over time and be governed by the DAO.

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3. Governance & DAO Participation

• $CHAR will be used to participate in DAO decisions over:
  • Reward distribution frameworks
  • Dataset access rules
  • Partnerships and integrations
• Governance logic is modular and upgradeable, allowing vChars to evolve governance mechanisms as it scales.

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Token Allocation (WIP)

The token allocation is still being finalized. Here’s what’s confirmed so far:

More details will be published as tokenomics design progresses.

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Integration with Vana’s Data Architecture

• vChars is fully integrated with Vana’s Data Access Layer.
• Access requests, payments, and conversion flows are handled through Vana’s infrastructure.
• This ensures interoperability with other DataDAOs and aligns $CHAR with Vana-wide network standards.