# Token

Hyperstable uses two tokens to manage its utility and governance:

[`$PEG`](https://hyperstable.gitbook.io/docs/usdpeg)

 (ERC-20), is distributed to liquidity providers through emissions and; 

[`$vePEG`](https://hyperstable.gitbook.io/docs/usdpeg)

which is used for Governance, to vote on Emissions and receive [Incentives](https://hyperstable.gitbook.io/docs/protocol/incentivize). vePEG also gets protected from dilution via [Rebases](https://hyperstable.gitbook.io/docs/usdpeg/rebase). vePEG is represented as a (transferrable) NFT.

**Vote Escrow**

The 've' in vePEG stands for : Vote Escrow, which is a mechanism used in decentralized governance to ensure fairness and transparency in decision-making. Any PEG holder can vote escrow their tokens and receive $vePEG in exchange. With Hyperstable, we call this [Locking](https://hyperstable.gitbook.io/docs/protocol/lock). <br>