# Introduction

Subunit’s tokenomics are designed to align incentives across the platform, ensure sustainable funding for operations, and distribute value to participants in an equitable way. This section will break the 3 major prongs and how the tokenomics function with each. 

**Tokenomics are divided into three major prongs:**

* $SUB tokens govern the overall platform
* $UNIT tokens govern individual properties
* $STS tokens govern the decisions of the subvault 

**Each token governs a separate DAO:**

* $SUB tokens govern the **Subunit Protocol DAO**
* $UNIT tokens govern the their **Property Specific DAO** (e.g. x street, California DAO)
* $STS tokens govern the **Subvault DAO**<br>

**DAO Executor Role - To be initially assumed by Subunit Labs:**&#x20;

* All DAOs rely on an executor mechanism to carry out the decisions that token holders vote on.&#x20;
* The DAO executor is essentially an agent or entity (it could be a smart contract multi-sig, a legal custodian, or a designated team member) responsible for executing the outcomes of on-chain votes in the off-chain world.&#x20;
* For instance, if a Property Specific DAO votes to approve a new lease agreement with a tenant or to allocate funds for a repair, the DAO executor would be the one to sign the actual legal documents or initiate the bank transactions as needed.&#x20;
* Similarly, if the Subunit Protocol DAO votes to adjust a smart contract parameter, the executor would trigger that change on-chain.&#x20;
* This role is critical because many real estate actions (like transferring a property deed or signing a rental contract) cannot be done purely via smart contract; they require a real-world intervention by a recognized party.


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