# | DEX Economics

<figure><img src="/files/7Imwu32yJVZE8LTpc8VY" alt=""><figcaption></figcaption></figure>

The token economy is a central component of a DEX and a key factor in its long-term success or failure. \
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The **$ONE token is the native Reward and Governance Token of SectorOne**, which can be earned through farming, via the initial $ONE Pre-Sale or by purchase. The central use case for $ONE is to stake it for real yield from protocol fees and to participate in the DEX governance.

### SectorOne Protocol Value Flow

<figure><img src="/files/1GA72qlvbFTt551MVb2Q" alt=""><figcaption><p>DEX Value Flow of SectorOne on MegaETH.</p></figcaption></figure>

Every DEX has three main stakeholders.

1. **Liquidity Providers**
2. **Traders**
3. **DEX Token Holders**

SectorOne finds a unique balance between all three stakeholders for long-term sustainability. Liquidity Providers (LPs) earn 80% of the fees directly from all trading activity on SectorOne as well as $ONE tokens through DLMM farms. Traders enjoy industry competitive, deep and efficient liquidity for trades. $ONE stakers earn 20% of all the fees earned across pools on SectorOne in $MEGA tokens.

### Stake $ONE for Real Yield

$ONE can be staked for real yield (payed in $MEGA) from fees earned by the protocol through all trading activity on the DEX. Through a locking mechanism in the staking contract a multiplier is applied to the earned fees. The longer the locking period, the higher the multiplier to the staking rewards (max. 365 days = 3x multiplier). \
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Distributing $MEGA to $ONE token stakers creates a constant buy pressure on $MEGA, aligning the ambitions of SectorOne with the wider $MEGA ecosystem.


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