> For the complete documentation index, see [llms.txt](https://docs.publicai.io/publicai-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.publicai.io/publicai-documentation/usdpublic-tokenomics/usdpublic-token-utility.md).

# $PUBLIC Token Utility

The **$PUBLIC token** serves multiple essential functions within the **PublicAI platform**, supporting a wide range of economic and governance activities. Its core utilities include:

#### 1. **Community Rewards**

**$PUBLIC** is used to incentivize data contributors for activities such as:

* Uploading datasets
* Participating in data validation through voting

As described in the token release mechanism, the issuance of $PUBLIC tokens is revenue-driven, meaning new tokens are minted proportionally to actual revenue generated by the platform, ensuring sustainable and value-aligned distribution.

#### 2. **Staking as Collateral**

Contributors are required to stake $PUBLIC tokens as a form of collateral to back the quality of their contributions.

* If a contributor is found to be submitting malicious, low-quality, or manipulated data, their staked tokens may be slashed (partially or fully forfeited).
* This mechanism helps ensure data integrity and discourages spam or dishonest behavior.

More details on Collateral Staking [here](https://docs.publicai.io/publicai-documentation/~/revisions/757Yw7G0wLhgNXHvF6uy/usdpublic-tokenomics/usdpublic-token-utility/collateral-staking-of-public).

#### 3. **Staking for Passive Yields**

Users who do not actively contribute but wish to support the ecosystem can stake $PUBLIC tokens to earn a base yield:

* A target Annual Return Rate (ARR) of 8%
* Eligibility requires no history of malicious activity

This allows for low-risk participation in platform growth while increasing token lock-in and reducing short-term market supply.

More details on APY staking [here](https://docs.publicai.io/publicai-documentation/~/revisions/0w382qPpODsV0ZerKx0o/usdpublic-tokenomics/usdpublic-token-utility/apy-staking-of-public).

#### 4. **Governance Participation**

All $PUBLIC holders are eligible to participate in **PublicDAO** governance, where they can propose and vote on key decisions, including:

* Reward and staking parameter adjustments
* Approval of new platform features or modules
* Dispute resolution rules
* General platform maintenance and policy changes

This ensures that the platform evolves in a community-driven, decentralized manner.