> For the complete documentation index, see [llms.txt](https://singulardao.gitbook.io/singular-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://singulardao.gitbook.io/singular-dao/tokenomics-and-governance/what-is-singular-dollar.md).

# What is Singular Dollar?

## Introducing Singular Dollar

SD: the utility and governance token. Accrues 30% markets generated fees.

SLP is the liquidity provider token for SingularDeX V1 markets. Accrues 60% of the V1 markets generated fees.

Given the context where SD is the utility and governance token accruing 30% of V1 market fees and 27% of V2 market fees, and SLP is the liquidity provider token for SingularDEX V1 markets, accruing 60% of V1 market fees, the $5 million raised in USDT can be strategically allocated to enhance the liquidity and functionality of these tokens in the following way:

## Liquidity Pool Establishment for SD:

\- Allocate a portion of the USDT to set up liquidity pools for SD on both V1 and V2 markets of SingularDEX.

\- Determine the appropriate ratio of SD to USDT for each liquidity pool, ensuring a balanced and stable market for traders and liquidity providers.

\- This liquidity pool helps facilitate trading of SD, ensuring that the token remains liquid and accessible for users.

## Support for SLP Token:

\- Use a part of the funds to provide initial liquidity for SLP tokens in the V2 markets.

\- This support will incentivize liquidity providers to hold and stake SLP tokens, benefiting from the 63% fee share from V2 markets.

## Fee Distribution Mechanism:

\- Establish a transparent and automated system for the distribution of trading fees to SD and SLP holders.

\- Ensure that the 30% and 27% fee accruals for SD and the 63% for SLP are distributed in a timely and fair manner.

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