> For the complete documentation index, see [llms.txt](https://docs.lexer.markets/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lexer.markets/token-and-economics/economic-flow.md). # Economic Flow **LEX** is both a utility and governance token. Currently, holders can participate in staking to receive 30% of the fees generated by the protocol in ETH. In the future, when the protocol reaches a significant level of maturity, LEX will be used for decentralized governance. ### Economic flow for Lexer For an easier understanding on how the money flows in Lexer and how each party benefits: * Traders can deposit and trade freely in various markets using the [different liquidity engines](/innovations-and-mechanism/hybrid-liquidity-engine.md) as directed by the Lexer [Smart Router](/innovations-and-mechanism/smart-router.md). * [Liquidity providers](/trading/liquidity-provision.md) can choose which liquidity engine to provide for, keeping in mind that depending on their choice they will receive a different type of yield. * 30% of the **total** trading fees goes to the staked LEX token holders (+ esLEX token holders). * 70% of the total trading fees goes to liquidity providers in addition to profits from trader losses in the native tokens.