> For the complete documentation index, see [llms.txt](https://docs.matrix.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.matrix.io/hong-kong-stablecoin-25-26/real-world-asset/reports/matrix-ai-network-driving-hong-kongs-stablecoin-infrastructure-and-real-world-asset-tokenization/chapter-6-community-governance-and-economic-model/6.2-tokenomics-and-incentive-scheme.md). # 6.2 Tokenomics and Incentive Scheme The MAN token underpins Matrix’s economic engine, driving utility across operations and aligning incentives for all stakeholders. #### Use of MAN
FunctionDescription
Platform FeesMicro-fees (0.5%) for asset creation, auctions, and governance actions
Deflation MechanismBuyback and burn protocol triggered by fee revenue
Governance RewardsIncentives for active voting and proposal creation
Staking YieldEnhanced voting power and proposal rights for MAN stakers
Ecosystem GrantsFoundation reserves for community initiatives and developer funding
Every incentive mechanism is automatically executed via Intelligent Contracts, minimizing manual intervention and boosting transparency. For example, in governance rewards, once a participant casts a vote on a proposal, the contract automatically distributes MAN tokens based on voting weight. If the participant is also the proposer, their reward adjusts dynamically based on the proposal’s approval rate—encouraging high-quality submissions. #### Incentive Scheme * **Governance Participation:** Periodic rewards for active voters and proposal authors * **Content Creation:** Incentives for educational media, analytics, and community engagement * **Development Contributions:** Grants for protocol improvements and feature implementations * **Bug Bounties:** Rewards for security audits and vulnerability disclosures