PSY serves as a governance token responsible for managing smart contracts and token treasury through on-chain voting. On-chain proposals and voting are conducted using the PSY token. The PsyOptions protocol generates fees from activities such as minting, exercising, volume on permissioned Serum markets, and affiliate fees from the user interface integrated with Serum order books. These fees are deposited into an address controlled by the governance protocol, allowing PSY token holders to propose and vote on various matters.