> For the complete documentation index, see [llms.txt](https://kernel-protocol.gitbook.io/kernel-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kernel-protocol.gitbook.io/kernel-protocol/tokenomics-and-revenue-model/kern-tokens-and-protocol-revenues.md).

# KERN Tokens & Protocol Revenues

At the heart of the Kernel Protocol ecosystem lies the KERN token. KERN tokens benefit from revenues accumulated by Kernel Protocol via a buy-back-and-burn mechanism. The tokens are also used to reward stakers during airdrop seasons.

Protocol revenue on Kernel Protocol is generated by taking a 0.1% minting fee and 0.25% redemption fee on all kAssets.

Protocol revenues are distributed as follows:

* 80% of fees generated are used for buy-back-and-burns of KERN tokens to ensure the token remains inflationary and to counterbalance any seasonal airdrops.
* 20% of fees go to project operations.