> For the complete documentation index, see [llms.txt](https://velocity-network.gitbook.io/velocity-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://velocity-network.gitbook.io/velocity-network/usdvlct-tokenomics/editor.md).

# Role-based Incentives

$VELOCITY clearly separates responsibilities among participants. This separation reduces systemic risk and aligns incentives with contribution.

#### Issuers

Issuers are entities such as universities, employers, governments and platforms that **issue digital credentials (**such as ID, degree, skill, license, employment experience.) They:

* do **not** stake tokens
* do **not** operate nodes
* Pay gas fees for writing credential metadata to the ledger. This includes initial Credential registration and Credential revocation (status updates)
* are rewarded **only when** their credentials are **verified**

Issuers monetize **credential usefulness**. They are compensated on a per-verification basis: credentials that are trusted and relied upon generate recurring revenue; unused credentials do not.

#### Oracle Node Operators

Node operators maintain the oracle infrastructure and form the **verification layer of the network**. They:

* stake $VLCT (self-stake + delegated stake)
* participate in verification pipelines
* process proof and response flows
* earn rewards from fees and emissions
* may be slashed for misbehavior

Node operators secure verification. They do **not** issue credentials.

#### Delegators / Stakers

Delegators secure the network **economically** by delegating $VLCT to node operators. They:

* back well-behaving nodes
* earn a **yield** on staked tokens
* are compensated from:
  * emissions (initial bootstrap phase)
  * verification fees (long-term steady state)

Delegators/Stakers do not need to operate infrastructure. They provide economic security.

#### Relying Parties

Relying parties are consumers of verifications:

* enterprises
* platforms
* financial institutions
* applications and protocols

They submit verification requests and pay Trust Ledger Call fees in $VLCT.\
They are the primary **demand engine** of the token economy.