> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vchars.ai/llms.txt
> Use this file to discover all available pages before exploring further.

> Tokenomics are under active design — this document outlines the current structure and core utilities.

# $CHAR Token

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.

***

## Token Utility

### 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.

***

### 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.

***

### 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.

***

## Token Allocation (WIP)

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

| Category   | Allocation | Vesting                                                        |
| ---------- | ---------- | -------------------------------------------------------------- |
| **Team**   | 15%        | 6-month cliff, 2-year linear                                   |
| **Others** | TBD        | Will include ecosystem, treasury, rewards, and liquidity pools |

More details will be published as tokenomics design progresses.

***

## 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.