# FAVOR Token

The main functions of FAVOR tokens are as follows:

1. voting token to approve loans for Party Hosts
2. factors in to Lending Trust Scores for Party Hosts
3. can be burned for a portion of the PartyNode DAO Treasury

The FAVOR Token model is designed to promote decentralization and sovereignty, while building [Decentralized Lending Trust Scores (DLTS)](https://docs.partynode.xyz/partynode/party-hosts/lending-trust-scores) for node operators. Sovereignty is maintained for FAVOR holders via a mechanism that enables FAVOR Tokens to be burned for a proportional share of the PartyNode DAO treasury.

The only time FAVOR tokens can be transfered out of the Party Passes is when being staked in the voting system for approving/denying loans.