> For the complete documentation index, see [llms.txt](https://l4va-team.gitbook.io/l4va-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://l4va-team.gitbook.io/l4va-docs/l4va-protocol/usdl4va-utility.md).

# $L4VA Utility

The $L4VA token powers the protocol — aligning incentives, enforcing governance, and driving utility for users.

#### Core Utilities

* [Protocol Rewards ($L4VA)](/l4va-docs/l4va-protocol/protocol-overview/protocol-rewards-usdl4va.md) – Earn $L4VA for creating vaults or completing actions across the protocol.
* Token Burning - 25% of all platform fees are used to buy and burn $L4VA, reducing circulating supply.
* Treasury Purchases – 25% of fees are used to buy back $L4VA and send it to the treasury for long-term governance.
* Governance Power – $L4VA holders vote on treasury use, ecosystem grants, and protocol upgrades.
* Staking & Unlocks – Stake $L4VA to access [Alignment Bonuses ($L4VA)](/l4va-docs/l4va-protocol/protocol-overview/alignment-bonuses-usdl4va.md), advanced protocol features, and yield programs.
* Discounted Fees – Pay protocol fees in $L4VA to receive transaction fee discounts (future).
* DeFi Integration Ready – Engineered for use in lending, farming, and liquidity pools across Cardano DeFi.<br>