# Strategic Partnership

Tokan Exchange will maintain an ongoing mutually beneficial partnership with Essence Finance. Essence Finance will allocate a large majority of their governance token emissions towards incentives on Tokan Exchange.

In return they will receive a veTKN allocation at launch as well as Tokan Exchange making CHI (Essence Finance's fully collateralized stablecoin) the base for pairs, i.e. most Bluechip tokens will be paired with CHI.

This dynamic allows mutually beneficial growth for both protocols.

The solidly-style dex was originally built around protocols and to be successful it needs a steady stream of rewards for veNFT holders. Essence Finance has allocated a large portion of their governance token for incentivizing on Tokan, which gives Tokan Exchange a cushion of safety. Lack of consistent rewards has been the main reason for the many downfalls in the storied history of solidly-style dex's.\
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Harmony between our main partner protocol means Tokan will be able to maintain stability and sustainability, crucial aspects in the initial stages of a solidly-style dex.


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