> For the complete documentation index, see [llms.txt](https://cagacrypto.gitbook.io/caga-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cagacrypto.gitbook.io/caga-whitepaper/tokenomics-and-utility/token-utility/payment-mechanism.md).

# Payment Mechanism

$CAGA simplifies transaction fees and contract interactions on the CAGA network, making it the preferred medium of exchange for:

* **Network Fees**: All actions on the blockchain, from simple transfers to complex contract executions, require $CAGA to cover transaction costs.
* **Service Payments**: Users can pay for various platform services, including smart contract deployment and on-chain data storage, using $CAGA.