# GAEA Token Utility

GAEA is the protocol utility token (on Cronos) that also rewards its holders with 100% of generated protocol fee revenue.&#x20;

The CRO token is deposited into the protocol when a user mints XRO token, while the GAEA token which is used for minting is burned. \
\
When the user redeems XCRO tokens, the protocol pays back CRO tokens and mints the required amount of GAEA tokens.

The ratio of CRO and GAEA tokens used by the minting and redeeming function of the Fantastic protocol is determined by the Collateral Ratio. These mechanisms are described with examples in more details in the next pages of our documentation.

## Token Utility

**CRO and GAEA Revenue**

Each minting and redeeming of synthetic assets like XCRO on Cronastic incurs a 0.40% and 0.50% fee, respectively. These fees are distributed as CRO and GAEA dividends to users who lock their GAEA on the platform.

**Capital Efficiency**

The capital required to mint XCRO is only partially denominated in CRO. The remaining portion is denominated in GAEA, which is required as collateral. This requirement creates both a natural demand for GAEA, as well as captures value.

**New Fantastic Synthetic Assets (Roadmap milestone)**

Equals more utility and liquidity for GAEA token holders because GAEA will always be a key ingredient in minting synthetic tokens.

**DeFi Integrations (Roadmap milestone)**\
\
Adoption and integration of Fantastic synthetic assets with other DeFi projects to develop and unlock new trading strategies (derivatives trading, leveraged trading/farming, other exotics)

**Early Exit Penalty Revenue**\
\
Besides CRO and GAEA revenue for users who stake their GAEA, stakers also earn 50% of the penalty fee from GAEA/CRO and stable pool farmers who claim their rewards early.


---

# Agent Instructions: 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:

```
GET https://fantasm-finance.gitbook.io/fantasm/cronastic-cronos/gaea/gaea-token-utility.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.
