> For the complete documentation index, see [llms.txt](https://docs.mu.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mu.exchange/getting-started/tokenomics.md).

# Tokenomics

## What is $MU?

$MU is the governance token for the Mu.Exchange. The purpose is to create a governance token that will help decide the platform's future, but it also functions as a token that receives the revenue accrued to the platform, as stated below.  You can read more about where to get $MU and other information [here](/getting-started/tokenomics/usdmu.md).

## Open/Close Position Fee Distribution

Currently, we charge 0.08% for both sides. The following may change in the future due to tokenomics updates or design changes; however, currently, the distribution is as follows:

{% tabs %}
{% tab title="With Referral" %}
10% will go to the referral

90% will be distributed as follows:

* 5% to the keepers
* 30% to the $msDAI vault
* 30% to $MU staking
* 35% to the Mu Exchange treasury
  {% endtab %}

{% tab title="Without Referral" %}
100% will be distributed as follows:

* 5% to the keepers
* 30% to the $msDAI vault
* 30% to $MU staking
* 35% to the Mu Exchange treasury
  {% endtab %}
  {% endtabs %}

## Liquidation Fee Distribution

They are also known as countertrade fees; most liquidation fees are shared with $msDAI vault owners.

A 5% liquidation fee will be distributed as follows:

* 5% to the keepers
* 30% to the $msDAI vault
* 30% to $MU staking
* 35% to the Mu Exchange treasury

## Funding Fee

* 80% to the counter-party
* 20% to the $msDAI vault

## Borrow Fee

* 100% to the $msDAI vault

## Governance

* Future token holders will be able to participate in governance.