> For the complete documentation index, see [llms.txt](https://docs.klimadao.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.klimadao.finance/economics/overview.md).

# 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:**](/economics/operational-mechanics.md)

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

[**Dynamics:**](/economics/dynamics.md)

1. [Supply Expansion](/economics/dynamics/supply-expansion.md)
2. [Supply Contraction](/economics/dynamics/supply-contraction.md)
3. [Green Ratio](/economics/dynamics/green-ratio.md)

[**Purpose:**](/economics/purpose.md)

1. [Means of exchange](/economics/purpose/means-of-exchange.md)
2. [Store of value](/economics/purpose/store-of-value.md)
3. [Unit of Account](/economics/purpose/unit-of-account.md)