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

# Token Utility

$LBLX serves four core functions within the LabelX ecosystem.

1\. Contributor Rewards

Contributors earn $LBLX based on:

* Verified labeling output
* Review and validation accuracy
* Quality Score and Trust Score multipliers

Rewards are distributed only after validation, ensuring quality-first incentives.

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2\. Proof of Contribution Settlement

All verified contributions are finalized on-chain via:

* Merkle-based reward distribution
* Non-custodial claiming
* Transparent settlement records

This ensures trustless reward execution without centralized control.

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3\. Access and Participation Signals

While $LBLX does not enable governance voting, it may function as:

* A participation threshold for advanced missions
* A signal for high-trust contributor roles
* A prerequisite for enterprise-level data workflows

This maintains functional utility without governance capture.

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4\. Ecosystem Incentive Alignment

Enterprises using LabelX datasets can:

* Allocate token incentives directly to contributors
* Reward contributors based on actual data usage and model impact

This directly links AI performance outcomes to contributor rewards.