# Swing Token ![](/files/YB062Iq2FhOxVOLuAcGP) ## **Swing Token Cashflows** ### **Swing generates token cashflows from a positive slippage model.** #### **How does positive slippage model work?** Positive slippage indicates when there is a price movement between the quote and the on-chain settlement of the trade in the user’s favor. To further elaborate, see the following example: 1\) Let's assume a trader on Swing makes a swap of 10 ETH for 10 DAI. During this swap, lets assume positive slippage occurs (10.2 DAI received) 2\) In this instance, a positive slippage amount of 0.2 DAI is captured. Swing will split this in two: 50% will go to the DAO treasury and 50% will go to the slippage contract (in the form of DAI) to accumulate 3\) Periodically, the slippage contract will swap all target tokens (ie. DAI) to Swing tokens 4\) These Swing tokens will then be distributed to stakers and liquidity providers of the Swing protocol aligning interests for stakeholders and the ecosystem ## Governance Swing grants token holders the right to propose and vote on changes to the multi-chain liquidity protocol. Swing Governance is based on governance contracts and supports voting based on token holdings. Proposals must pass a given threshold and percent of yes votes based on the type of proposal. Swing tokens can be used to make or vote on governance proposals, or be delegated to other Ethereum addresses. Swing token holders will be able to vote on the following: 1. Allocating community treasury funds 2. New token listings on Swing's protocol 3. Adding new markets for staking 4. Governance contracts themselves 5. Determining rewards **More details to follow once governance portal is setup.** --- # 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://swing-4.gitbook.io/swing/resources/swing-token.md?ask= ``` 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.