# L1X Coins Layer-One coins (L1X), are required in the following cases: * **Resources:** To conduct a transaction on the network or to be able to execute scripts on the network. Resources on the network are the primary driver and L1X coins are required. * **Exchange:** L1X coins provide a medium of exchange amongst its participants on the network, which can be used to transact on the network. * **Liquidity for secondary coins:** To gain liquidity on the platform, L1X coins will provide access to decentralized pools that will allow for coin exchange. They will also be able to act as collateral for secondary tokens. * **Rules and governance participation:** For the ongoing rules and governance changes, it is important for the network to be able to sustain changes and updates. To validate updates, L1X coins will allow users to participate in governance and rule updates. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://l1x-sdk.gitbook.io/l1x-foundation/l1x-technology-explained/l1x-reward-mechanism/l1x-coins.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.