# Avareum Fundamentals This section will outline a framework for understanding how we can value AVAR in an efficient market. When finding resemblance for tokens in the traditional financial world, stocks are a commonly referenced asset class. This is especially true for tokens with a supply reduction model. There is always a direct relationship between cash flow generated in the service and the value of tokens burned—comparable to a direct relationship between net profits generated and buybacks in the equity markets. The resulting impact for token holders and shareholders is comparable when a corresponding token burn or equity buyback is incurred. A stock buyback increases each outstanding share's proportional ownership of the total company value, while a token burn increases each token's proportionate ownership of the entire protocol value. At a high level, AVAR will serve in the following capacities: * As votes that can be cast in the governance poll system * As a utility token needed by Avareum investors to be granted to invest in advanced fund strategies. --- # 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.avareum.finance/avareum/tokenomics-1/avareum-fundamentals.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.