# Tokenomics

## SAIL & veSAIL

SailFish employs two tokens for its utility and governance functions:

* **$SAIL:** An ERC-20 utility and reward token for the protocol.
* **$veSAIL:** An ERC-20 governance token for the protocol.

$SAIL is used to reward liquidity providers through emissions, while $veSAIL is designated for governance. Any $SAIL holder can vote-escrow their tokens to receive an equivalent amount of $veSAIL at any time. There is no lock-up period, and each $veSAIL token carries equal voting power.

Conversion from $SAIL to $veSAIL is always available but irreversible. However, $veSAIL can be liquidated at any time through the $SAIL/$veSAIL pair on SailFish.
