> For the complete documentation index, see [llms.txt](https://imacro.gitbook.io/imacro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://imacro.gitbook.io/imacro/macro-token/user-roles-and-incentives.md). # User Roles and Incentives
Macro's tokenomics revolve around distinct roles, each contributing to the protocol's health while earning rewards. These roles leverage $MACRO for voting, speculation, and yield generation. **Holders** Holders are passive participants who bet on the overall growth of the Macro ecosystem. * Key Function: Speculate on ecosystem expansion, including TVL growth, asset integrations, and Base chain adoption. * Incentives: Benefit from potential price appreciation driven by protocol success. * Mechanics: Hold and indirectly benefit from platform revenues and buybacks * Benefits to Ecosystem: Long-term holding reduces sell pressure, allowing the protocol to mature and integrate with Coinbase's on-chain initiatives. **Voters (COMING SOON)** * Key Function: Vote on rebates on selected lending markets. This democratizes decision-making, allowing the community to prioritize high-demand assets. * Incentives: Earn voting rewards from bribes from other protocols for rebates. * Mechanics: Votes are submitted via on-chain voting tools. Voting power scales with additional tickets. * Benefits to Ecosystem: Rebates attract more borrowers, increasing TVL (Total Value Locked) and generating higher revenues for redistribution. **Stakers** Stakers commit $MACRO to the protocol to earn a share of platform revenues. * Key Function: Speculate on Macro's revenue growth by staking tokens, providing liquidity and stability to the ecosystem. * Incentives: Receive a portion of lending fees, borrow interest, and other protocol earnings. * Mechanics: Stake $MACRO to receive sMACRO. This receives variable APYs based on platform utilization and revenues. * Benefits to Ecosystem: Staking locks supply, reducing circulating tokens and supporting price stability. **Lenders** Lenders supply assets to Macro's markets to earn yields. * Key Function: Provide liquidity for borrowable assets like $TOSHI or $KTA, earning interest from borrowers. * Incentives: Competitive APYs from borrow demand, plus $MACRO rewards for supplying to promoted markets (e.g., via voter-approved rebates). * Mechanics: Deposit assets into Morpho-optimized vaults for efficient matching. Lenders can withdraw anytime, subject to utilization rates. * Benefits to Ecosystem: Increases available liquidity, enabling more borrowing and driving protocol fees. **Borrowers** Borrowers use Macro to access leverage without selling assets. * Key Function: Leverage holdings without selling or optimizing yield strategy (e.g., looping strategies). * Incentives: Lower interest rates through weekly rebates, plus potential $MACRO airdrops for high-volume users. * Mechanics: Collateralize assets to borrow stables or other tokens. Over-collateralization ensures safety, with liquidation protections via Morpho. * Benefits to Ecosystem: Boosts utilization rates, generating fees that flow back to stakers and voters. **Economic Mechanisms** * Rebates: Governed by voters, with MACRO ticket holders earning from the rebates, stimulating both borrowing and TVL growth. * Revenue Sharing: Platform fees and revenues are redistributed to stakers and voters. * Risk Management: Insurance funds and DIA oracles integration mitigate risks in lending/borrowing. **Future Outlook** Macro's tokenomics are engineered for scalability, with potential expansions such as cross-chain integrations or new asset markets. As Base grows, $MACRO holders stand to benefit from increased adoption. Community feedback will shape updates, ensuring alignment with user needs.