# Token Utility

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Pinjam will be distributing all of the revenue generated directly to users who stake. Both lenders and borrowers receive $TOKEN rewards to incentivize protocol use - but with different distributions over time.

The tokens will be vested for 3 months but may be claimed immediately for a 50% penalty. The penalty is then distributed to users who choose to lock for 3 months. This mechanism ensures steady rewards for those who actively commit to the protocol by locking their tokens.

1. If you're a staker, you receive protocol fees.
2. If you're a locker, you receive protocol fees - AND exit penalties from users who exit their vests early.

Additionally, when users lend on Pinjam, the Pinjam protocol will lend out **unborrowed** funds to other ecosystem projects which will generate yield, resulting in higher yields for lenders and stakers.


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