# Token Utility

<figure><img src="https://1562665776-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbmydAiAzmXMgAY3rMQIG%2Fuploads%2F0Og2i7rO3KTeiuTWqpos%2FPinjam%20Tokenomics%20and%20Utilities.png?alt=media&#x26;token=80f4347f-4558-4565-8e36-e29a6acb5095" alt=""><figcaption></figcaption></figure>

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.