> For the complete documentation index, see [llms.txt](https://doc.datagram.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.datagram.network/documentation/whitepaper/5.-tokenomics/5.1.-tri-token-model.md). # 5.1. Tri-Token Model The Datagram ecosystem employs a tri-token model that includes: * **$DGRAM:** The primary utility token used for payments and governance. * **$DATA:** A burnable, non-transferable token for service payments. * **$UDP, $TCP & $AI Reward Points:** Non-transferable points for infrastructure contributors. **$DGRAM** is the primary payment token within the Datagram ecosystem, based on the Avalanche network using the AVAX C-Chain ARC-20 standard. $DGRAM will be tradeable on exchanges and can only be obtained by converting $UDP, which is awarded to Cores for providing infrastructure services. $DGRAM serves as the currency for payments within the ecosystem, facilitating transactions for services and rewarding operators for their contributions. **$DATA** is a non-transferable, burnable token designed for purchasing services within the Datagram network. with each $DATA token equivalent to $0.01 worth of services. $DATA is generated when $DGRAM is burned, with the burn value locked in at a seven-day moving average of $DGRAM’s fiat value using the CoinGecko Oracle. This mechanism ensures that users who prepay for services by converting $DGRAM into $DATA are protected from market volatility, as the value of $DATA remains stable despite any fluctuations in the price of $DGRAM. $UDP, $TCP & $AI are distributed as network rewards, corresponding to two fundamental types of internet traffic: User Datagram Protocol UDP and Transmission Control Protocol (TCP). * UDP traffic is connectionless and low-latency, transmitting data quickly without verifying delivery. This makes it ideal for real-time applications such as gaming, streaming, and audio and video communication. * TCP traffic is connection-oriented and reliable, ensuring data is delivered accurately and in order. This is essential for web browsing, media streaming, financial transactions, and other applications where data Integrity is critical. * AI traffic is a blend of compute and low-latency data for real-time inference with high-throughput needs for training and synchronization. Core operators earn non-transferable $UDP and $TCP points based on their contributions to the network. These points accumulate throughout the day and are redeemed at the end of each day into $DGRAM at a rate of $0.01 per point, calculated based on a seven-day price average of $DGRAM. For example, an operator earning 10,000 $UDP and 5,000 $TCP points in a day would receive $150 worth of $DGRAM upon settlement ($100 from UDP traffic + $50 from TCP traffic). Importantly, $UDP is exclusively awarded to Datagram Full Cores, ensuring that only fully committed infrastructure providers benefit from these high-performance network incentives. Operators using the Datagram Custodial Wallet must maintain a minimum balance of $20 before they can transfer or convert their accumulated $DGRAM. Additionally, custodial wallet users will incur a small transaction fee when processing transfers. In contrast, operators using non-custodial wallets (e.g. Metamask) are only responsible for covering the standard gas fees required by the ecosystem, providing greater flexibility and control over their funds. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://doc.datagram.network/documentation/whitepaper/5.-tokenomics/5.1.-tri-token-model.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.