# POLAR > POLAR is the token powering Polaris. Canonical URL: https://docs.polaris.finance/core-assets/polar Markdown URL: https://docs.polaris.finance/core-assets/polar.md Section: Core Assets Documentation index: https://docs.polaris.finance/llms.txt Full documentation bundle: https://docs.polaris.finance/llms-full.txt --- POLAR is the token powering Polaris. The protocol is built around pETH and the pAssets minted against it. Together, they provide the collateral, currencies and synthetic assets that form the foundation of the system. Around that foundation, liquidity flows develop across different products, applications integrate the protocol, users build new strategies and the value generated throughout the Polaris ecosystem needs to be directed toward the participants who help it grow. POLAR is the utility token that provides the shared economic layer that allows the Polaris ecosystem to scale around these activities by supporting liquidity, integrations, ecosystem incentives and long-term stewardship. ## POLAR Design Unlike several governance tokens, POLAR is not designed around perpetual emissions that distribute new tokens simply because time passes. Following the initial allocation and its vesting schedule, the long-term growth of the supply is designed to happen through the Polaris conversion mechanism. With this mechanism, users convert pETH into newly minted POLAR. The pETH used for the swap is burned, reducing its supply and directing the value generated by the conversion towards the pETH yield flows, which also increase the value backing every pETH in circulation. The conversion mechanism only works in one direction, from pETH to POLAR. Since POLAR cannot be converted back into pETH, the protocol never needs to reserve part of the conversion value for future redemptions. This allows the full value generated by every conversion to grow the pETH floor, where it becomes part of the protocol-native yield. Therefore, the POLAR supply is set to grow thanks to activity inside Polaris without following a fixed emissions schedule. At the same time, every conversion strengthens pETH, the collateral asset supporting the rest of the protocol. The conversion mechanism and its economic design are explained in detail in the dedicated section of the documentation. ## The Role of POLAR POLAR is designed to support the development of the Polaris ecosystem. As new applications are introduced, they can build around the same utility token to drive adoption and engage users. Liquidity programs can use POLAR as new products get introduced, while integrations and ecosystem initiatives can continue building on the same utility asset as Polaris expands. This allows different parts of the ecosystem to coordinate around a common economic layer without merely relying on incentives. As more activity takes place across Polaris, the role of POLAR naturally expands alongside it. ## vePOLAR The long-term utility of POLAR is expressed through vePOLAR. Users receive vePOLAR by committing POLAR for a chosen period of time between 2 weeks and 4 years, aligning stewardship with participants who take a longer-term view of the ecosystem. In return, vePOLAR holders receive a share of the interest paid by USDp and GOLDp minters, with that value distributed directly in USDp and GOLDp. POLAR is not used to boost these returns through additional incentives. Through vePOLAR, long-term participants can help coordinate how the ecosystem evolves by taking part in decisions around incentive distribution, integrations and other initiatives. The protocol itself continues to operate through immutable smart contracts, while vePOLAR provides a structured stewardship layer that helps guide the development of the ecosystem. The stewardship model and the tokenomics of POLAR are explained in the dedicated sections of the documentation.