# Dual Token Model

## Why Dual Tokens?

* Having two token allows for better management of the token's economic system by separating the governance and utility functions of the token. It ensures that the governance token is solely used for decision-making and voting rights, while the utility token is used for transactions and incentivizing users. 
* Although, even the $ENOCH token can be used to make transactions within the application in a smaller number. This ensures that the investors are able to also engage in the platform without a need to buy or earn another token.
* the dual token model will enhance the platform's liquidity and increase the adoption of both tokens. By offering two tokens, the platform can attract a wider range of investors and users with different goals and needs, thereby increasing the market demand for both tokens.

<figure><img src="/files/JBMFaAWqhurp2AZMuep9" alt=""><figcaption></figcaption></figure>

## Benefits of Dual token system

* It will reduce the volatility of the platform's governance token by separating it from the utility token's price fluctuations. This will help stabilize the governance token's value and maintain investor confidence in the long-term.
* It offers a more equitable distribution of rewards to users. By using a separate utility token for rewards, the platform can ensure that the governance token's value is not diluted by excessive reward issuance. This also helps to prevent potential conflicts of interest between the platform's governance and user incentive programs.
* The dual token system allows for greater flexibility in designing each token's features and functions, tailoring them to specific use cases and target audiences.


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