# Functions and Governance

## Functions

ARMOR is the governance token for the system and serves the following functions:

* Staking in ARMOR:ETH liquidity pool and staking LP tokens into governance staking. Earn LP fees + staking rewards (20% of profits) proportional to your share in the staking pool.
* Governance on protocol and system updates

### Governance

The responsibilities for governance include:

* Voting on updates to smart contract code
* Voting on changes to constants used in the fee model (such as premium charge for buyers) 
* Voting on the exact time a hack took place

As a reward for staking tokens and participating in the governance of the system, the token holders for the ArmorDAO may vote to be given a share of the revenue made by the arCore system.

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