> For the complete documentation index, see [llms.txt](https://hengai.gitbook.io/hengai-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hengai.gitbook.io/hengai-docs/introduction.md).

# Introduction

#### What is HENG AI?

HENG AI is a fully liquid reward token that integrates an advisory AI optimization layer to reward long-term holders without requiring staking or lockups.

### CORE PRINCIPLES

HENG AI is built on five fundamental principles;

1. **HOLD TO EARN**\
   Rewards are distributed automatically to holders based on real market activity, not token emissions.
2. **NO INFLATION**\
   HENG AI does not min new tokens for rewards, all yield comes from organic DEX trading fees.
3. **AI as AN ADVISOR**\
   Artificial intelligence provides data-driven recommendations, while final decisions remain governed by the community.
4. **FULL TRANSPARENCY**\
   All logic, rewards and governance actions are verifiable on-chain.
5. **SUSTAINABILITY FIRST**\
   The protocol is designed to reward patience, discourage excessive selling, and protect long-term value.

### How the Protocol works?

i. Users trade HENG AI Token on supported DEXs.

ii. Buy and Sell fees are collected by the protocol.

iii. Fees are allocated to:

     \- Holders rewards.

     \- Liquidity reinforcement.

     \- Protocol treasury.

iv. MUD rewards are distributed directly to HENG AI Token holders daily.

v. AI monitors market health and suggests optimizations

vi. Governance approves or rejects proposed changes.

> &#x20;<mark style="color:$success;">HENG AI – Intelligence That Rewards Patience.</mark>