When users conduct private or stealth transactions through the VeilNet desktop application, $VEILNET is utilized as the settlement token for transaction fees.
Fees are automatically collected when routing transactions via the Privacy Mesh and Stealth Routing Protocol.
A portion of these fees is directed into the Revenue Allocation Model (see Section 5.3), powering rewards, buybacks, and development.
This creates a direct correlation between transaction activity and token demand — as adoption rises, utility expands.
In short, $VEILNET acts as the fuel for privacy-enabled transfers, turning every transaction into value for both users and holders.