> For the complete documentation index, see [llms.txt](https://nitro-finance.gitbook.io/ftl/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nitro-finance.gitbook.io/ftl/nitronomics/tokens-structure.md).

# Tokens Structure

The tokenomics model is centered on the dynamic interplay between **$NIT** and **Reward Tokens** (xNIT, Nitro point), creating an infinite reward cycle that ensures **$NIT’s** value stability and supports long-term sustainability.

<figure><img src="https://1590734653-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUz9H2yEvvJUXv6c07FqW%2Fuploads%2FzpIwOM7v91QZ7uSPsSbV%2FThe%20Triad%20Structure%20FTL%20re.svg?alt=media&amp;token=1566caa6-73c5-4329-9c3b-d09e2a20a593" alt="" width="563"><figcaption></figcaption></figure>

## **Tokens**

### **$NIT:**

$NIT serves as the native token of the protocol. At the DAO’s inception, $NIT holders will govern essential parameters, including:

* Deploying new trading pairs using the token reserve balance.
* Allocating DAO grants to support ecosystem expansion.
* Adjusting market parameters or disabling borrowing for specific pairs.

### Reward Tokens

* **Nitro Points** are non-transferable reward tokens designed to incentivize platform engagement. They are earned through interactions such as liquidity provisioning, borrowing, and blacklisting of expired debts.
* **xNIT** are earned through the conversion Nitro Points, and they can be converted into $NIT via the rewards contract. For more details, [<mark style="color:purple;">\[click here to learn more\].</mark>](/ftl/nitronomics/nitro-point-xnit.md)

{% hint style="success" %}
**Fee Distribution**

* **Liquidity Providers (75%)**
  * 75% of transaction fees are directed to liquidity providers, rewarding them for swaps, borrowing, and other interactions.
* **Treasury Fee Reserve (25%)**
  * 25% of transaction fees are reserved for:
    * Platform development and expansion.
    * $NIT buybacks, reducing token supply and enhancing scarcity.
    * Increasing xNIT backing in the reward contract to sustain long-term rewards.
      {% endhint %}