> For the complete documentation index, see [llms.txt](https://docs.splash.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.splash.trade/splash-token/understanding-splash.md).

# Understanding $SPLASH

The SPLASH token's main purpose is to attract liquidity providers and rule the protocol. It is also a crucial part of the Splash Protocol distributed business model.

Here are the utilities:

* Earning protocol fees
* Controlling SPLASH emission
* Voting for protocol changes

## Utility

To get the utilities above, users must lock SPLASH tokens for up to 1 year in the `VotingEscrowLock` smart contract. The minimal locking time is 1 week. The longer the lock the more voting power and share a user gets.

[$veSPLASH](/splash-token/ve-splash.md)

## Earning protocol fees

100% of all Protocol Fees can be claimed by `veSPLASH` holders every week.

## Controlling SPLASH emission

SPLASH inflation takes place via gauges and liquidity providers can claim the newly issued tokens every week.

[Understanding gauges](/gauges/understanding-gauges.md)

## Voting for protocol changes

{% hint style="info" %}
The voting utility is a subject of the V2 protocol release. More information about Voting will be released in Q2 2024.
{% endhint %}

There are two types of governance proposals:

* Proposals for changing protocol parameters
* Proposals to manage DAO treasury