# Background

The ANT token (ANTT) is a utility token designed to be used as governance for the Decentralised Autonomous Organisation (DAO) The Anthill, as a medium of exchange, to pay rewards and for purchasing products and services.

In addition, ANT holders have voting rights and the ability to create proposals to improve the protocol.

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## Algorithmic Central Banks <a href="#algorithmic-central-banks" id="algorithmic-central-banks"></a>

Although a wide variety of stablecoin mechanisms exist, the Anthill Protocol specifically uses an “algorithmic central bank” approach to manage the supply of tokens according to a predetermined logic. The algorithm is in charge of balancing stablecoin supply to a fluctuating demand, ensuring that the token price remains relatively stable. Further details are available under the [Mechanisms](/docs/mechanisms/stabilisation-mechanism.md) section.


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