Tokens enabled aligned incentives and co-ordination. However they've also been abused and become a point of contention after the run up the 2017 ICO boom.
The ADD token is utilised in the following ways:
Burn. A percentage of the ADD.xyz tokens collected from the network fees are burned. This will reward ADD holders as adoption grows.
Network Fees. ADD holders have control over the platform. ADD.xyz is a self-amending network where holders will decide on upgrades and potential fixes. Tokens have to be bonded in order to vote.
Bonding and Governance. Fees will be collected as a percentage of the smart contract payments executed. ADD tokens are burned as fees as the protocol is utilised.
Staking. A percentage of the fees collected will be paid out to token holders who have token staked in a non-custodial staking contract. No node is required to run.