# Overview

$KLIMA is designed as a utility token, central to providing liquidity in the carbon market. It plays a pivotal role in the Carbon Market (CM) by acting as a means of exchange and index of carbon projects.

This section outlines the operational mechanics, the dynamics, and the purpose of $KLIMA.

[**Operational mechanics:**](https://docs.klimadao.finance/economics/operational-mechanics)

1. [Intrinsic value](https://docs.klimadao.finance/economics/operational-mechanics/intrinsic-value)
2. [Protocol Owned Liquidity (POL)](https://docs.klimadao.finance/economics/operational-mechanics/protocol-owned-liquidity-pol)
3. [Fungible Carbon Credits](https://docs.klimadao.finance/economics/operational-mechanics/fungible-carbon-credits)

[**Dynamics:**](https://docs.klimadao.finance/economics/dynamics)

1. [Supply Expansion](https://docs.klimadao.finance/economics/dynamics/supply-expansion)
2. [Supply Contraction](https://docs.klimadao.finance/economics/dynamics/supply-contraction)
3. [Green Ratio](https://docs.klimadao.finance/economics/dynamics/green-ratio)

[**Purpose:**](https://docs.klimadao.finance/economics/purpose)

1. [Means of exchange](https://docs.klimadao.finance/economics/purpose/means-of-exchange)
2. [Store of value](https://docs.klimadao.finance/economics/purpose/store-of-value)
3. [Unit of Account](https://docs.klimadao.finance/economics/purpose/unit-of-account)