# 11.2. Token Utility

### Utility of the BNC Token

The **BitNet Coin (BNC)** is the native utility token that powers the BitNet ecosystem. It plays a fundamental role in ensuring secure operations, incentivizing participation, enabling decentralized governance, and driving adoption across dApps and infrastructure.

#### Key Utilities of BNC

**1. Transaction Fees**\
BNC is used to pay for transaction execution and smart contract interactions across the BitNet mainnet and its application-specific subnets. Its low-fee design supports scalable DeFi, NFT, and enterprise use cases.

**2. Staking and Network Security**\
To maintain network integrity, users can stake BNC to become validators or delegate to existing nodes. Stakers help secure the Proof-of-Stake layer and receive protocol rewards in return, incentivizing honest participation.

**3. Governance**\
BNC holders are granted voting rights to shape the future of the BitNet protocol. Through governance proposals and decentralized voting mechanisms, the community can adjust parameters, approve upgrades, and allocate ecosystem grants.

**4. Ecosystem Usage**\
BNC fuels a growing suite of decentralized applications, including DEXs, NFT marketplaces, launchpads, and bridges. It is the core medium of exchange and collateral within BitNet's modular financial layer.

**5. Community Rewards**\
Active contributors — from developers and creators to node operators and ecosystem promoters — can earn BNC for their efforts. This incentive structure supports grassroots innovation and broad community engagement.


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