# Token Governance

PARA, a native utility token based on the ERC-20/ Arbitrum one chain ParaFinance.

Para emissions incentivize ecosystem participants to provide utility to the platform as Dynamic Liquidity Providers (dLPs).

Only users who lock up dLP (liquidity tokens) can activate their Para emission eligibility for deposits or borrowings. Additionally, dLP’s share of the platform’s fee utility is captured in blue-chip assets such as Bitcoin, Ethereum, BNB, and stablecoins from borrowers paying interest on loans, flash loans, and liquidation fees.

Through decentralized discussion, voting and governance, PARA DAO has and will always determine decisions and ultimately the vision of the ParaFinance ecosystem. All users are encouraged to watch the explainer video located on the marketplace page.
