# Tokenomics

Rooster Protocol utilizes a dual-token system designed to incentivize participation, align long-term incentives, and ensure protocol sustainability through carefully managed utility and governance mechanisms.

## Tokens

* **ROOSTER:** An ERC-20 utility token serving as the primary reward and incentive mechanism within the protocol.
* **veROOSTER:** An ERC-721 governance token, represented as an NFT (non-fungible token), which grants voting rights and potentially other benefits within the protocol.