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

# Token Purpose & Utility

<figure><img src="/files/7ZN0TdsubWgzo3YnTiuy" alt=""><figcaption></figcaption></figure>

### Token Purpose&#x20;

The **GBM Token ($GBM)** is the economic engine of the protocol. It aligns incentives across all participants in the GBM ecosystem - including builders, bidders, sellers, stakers, and governance contributors.

As the cornerstone of the GBM Auction Protocol, the token is designed to:

* **Incentivise participation** across all participants in the GBM ecosystem
* **Drive adoption** of GBM’s auction technology across Web3 and beyond
* **Foster a loyal, engaged community** aligned with the protocol’s long-term growth

### Token Utility

The $GBM utility token unlocks a variety of benefits and features across the protocol. Most utilities require holding, spending or staking tokens to be accessed.

Key initial utilities of the $GBM token include:

#### 1. Auction House Publishing Payment

Used to pay publishing fees when launching a new GBM auction house, alongside other accepted currencies.

#### 2. Auction Currency

Projects and communities can choose to accept $GBM tokens as a bidding currency in their auctions.

#### 3. Staking Rewards

Holders can stake their $GBM tokens to receive rewards from the protocol’s rewards pool, with distributions decided by community governance.

#### 4. Voting Power

$GBM token holders can vote on proposals and help govern the future of the protocol

#### 5. Preferential Auction Incentives

Token holders who meet specific staking thresholds can unlock enhanced incentive rates when bidding in GBM auctions across the protocol.&#x20;

Over time, as the protocol develops, **expect further utility to be ascribed to $GBM tokens.**

*Note: There is no guarantee, promise, or expectation of resale value or financial return. GBM tokens are utility tokens, intended for use within the GBM Protocol.*