# NOTE

NOTE is an [ERC-20](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-20.md) token that governs the Notional protocol. NOTE holders can propose, vote on, and implement changes to Notional system parameters and smart contracts. Each NOTE holder gets one vote per NOTE that they hold.

### NOTE Holder Responsibilities

NOTE holders will be responsible for managing the Notional on-chain treasury, setting risk and collateralization parameters, and voting on any proposed upgrades to the Notional smart contracts. Here is a short, non-exhaustive list of things NOTE holders will need to propose and vote on:

* Setting liquidity fees
* Setting collateral haircuts
* Onboarding new collateral types
* Activating new maturities for lending and borrowing different assets
* Determining liquidity incentive emission rates for different currencies
* Proposing and evaluating upgrades to the protocol

### Voting and Delegation

Currently NOTE voting is done via [Snapshot](https://snapshot.org/#/notional.eth), for more on Governance and plans for gradual decentralization are discussed on this [page](https://docs.notional.finance/developer-documentation/on-chain/notional-governance-reference).

### Liquidity Incentives

Notional incentivizes liquidity providers by distributing NOTE to nToken holders. nToken holders accrue NOTE rewards proportional to their share of the total NOTE outstanding and to the annual NOTE emission rate for that currency type. Current annual emission rates by currency are as follows:

USDC: 9,000,000\
DAI: 9,000,000\
ETH: 1,000,000\
wBTC: 1,000,000