# Flywheel

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### **$VOLS / $VOLSAI Dual-Token**&#x20;

* **$VOLS** = Utility token (used for AI agent actions, developer fees, etc.)
* **$VOLSAI** = Governance token (used to vote on agent policies, grants, priorities)

**Objective**: Drive demand for $VOLS, participation via $VOLSAI, and keep incentives tightly coupled.

***

### ♻️ Flywheel Model

#### Summary:

| ACTION                                   | IMPACT                          |
| ---------------------------------------- | ------------------------------- |
| Stake $VOLSAI → earn $VOLS               | → Increase governance demand    |
| Use $VOLS for agents/tools               | → Drive fees + burns            |
| Fees/Burns accrue to $VOLSAI stakers     | → Makes staking more attractive |
| $VOLSAI voters control future incentives | → Attracts long-term governors  |
| Flywheel continues...                    | ♻️                              |

#### **1. Stake $VOLSAI → Earn $VOLS**

* Users **stake $VOLSAI** to receive **$VOLS** airdrops or yield, drawn from real fees / rewards.
* Strongly aligns governance participants with usage.

#### **2. Use $VOLS → Trigger Protocol Activity**

* $VOLS is needed to:
  * Launch AI agents.
  * Pay for advanced API features.
  * Apply for dev grants or partner tools.
* **Using more $VOLS** drives value accrual, making $VOLSAI staking more attractive (to earn from it).

#### **3. Burn + Fee Pool Model**

* % of $VOLS used in AI interactions → Burned.
* Another % → Goes to fee pool governed by $VOLSAI stakers.

#### **4. Governance Flywheel**

* Holding + staking $VOLSAI gives rights to:
  * Propose/approve spending from fee pool (grants, product priorities).
  * Determine reward weights across agents.
  * Influence which teams/projects receive $VOLS support.

***

### 🧩 Multi-Chain Arbitrage Layer

* $VOLS is on Base and $VOLSAI is on Solana, this introduces a **liquidity and cross-chain incentive loop**.
* Users on Base can bridge $VOLS for use, and governance holders on Solana can vote to direct $VOLS toward certain chains/teams.

<figure><img src="https://2183887631-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FmU2xSIMjFScEZLQcmB97%2Fuploads%2Fgd6ilhORlGRxJt1YpAFw%2F1.png?alt=media&#x26;token=47f404b7-06c4-4efb-ae66-b376fb5d2048" alt=""><figcaption></figcaption></figure>