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description: Definition of RCT token economy
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# Tokens

### `$RCT` — ERC-20 utility token of the protocol <a href="#usdthe-bep-20-utility-token-of-the-protocol" id="usdthe-bep-20-utility-token-of-the-protocol"></a>

`$RCT`emissions currently have two key objectives:

* Reach and maintain adequate liquidity to facilitate optimal trading conditions — `$RCT` are emitted as farming rewards to incentivize deep liquidity
* Encourage decentralized governance — `$RCT` can be used to take part in the governance for continuous development of the platform. The long term goal is to achieve true decentralization.

### `veRCT` — ERC-721 governance token in the form of an NFT (non-fungible token) <a href="#vethe-erc-721-governance-token-in-the-form-of-an-nft-non-fungible-token" id="vethe-erc-721-governance-token-in-the-form-of-an-nft-non-fungible-token"></a>

`veRCT` is the vote-escrowed version of `$RCT`. Users can lock their `$RCT` tokens for up to 2 years to get `veRCT`. The longer the lock, the higher the amount of `veRCT` voting power received.

The lock period (also known as vote-escrowed period, hence the _ve_ prefix) can be up to 2 years, following the linear relationship shown below:

* 100 `$RCT` locked for 2 years will become 100 `$veRCT`
* 100 `$RCT` locked for 6 months will become 25 `$veRCT`&#x20;

To encourage continuous locking and sustained participation from stakeholders, the `veRCT` balance of users declines over time until it reaches zero at the conclusion of the initial locking period. `veRCT` positions can be increased, split up and resold on a secondary market. `veRCT` holders access the revenue generated by the platform.

The longer the vesting time, the higher the voting power (voting weight) and rewards the `$veRCT` holder receives.
