# PNDO Token ## Overview PNDO is the token at the core of the protocol's fee mechanism. PNDO has a fixed initial supply. It can only be burnt, and never minted. It’s always more optimal to not burn PNDO because of the future expected rewards from the protocol. ## Fee Mechanism When a user withdraws tokens from the pool, by burning pALEO tokens, a 10% fees on these rewards goes to Pondo’s Rewards Pool. PNDO holders can redeem their PNDO for the ALEO credits in Pondo’s Rewards Pool proportional to their holdings. PNDO holders send their PNDO to the Pondo Protocol. The Pondo Protocol will burn those PNDO tokens and withdraw a proportional amount of ALEO credits from the protocol to send back to the original PNDO holder. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.pondo.xyz/validators/pndo-token.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.