> For the complete documentation index, see [llms.txt](https://alaya-ai.gitbook.io/alaya-ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://alaya-ai.gitbook.io/alaya-ai/user-manual/nft-system.md).

# NFT System

Alaya AI utilises a dual-NFT design consisting of Alaya NFTs and Medallion NFTs. The dual-NFT design is implemented to distinguish gamified user incentives and personal achievements from system labelling and optimisation features.

**Alaya NFTs:**&#x20;

Alaya NFTs are distributed to users for free upon registration, Alaya NFTs are required for users to complete training tasks, obtain task rewards, and participate in community events. They can be understood as the “player character” of Alaya’s gamified UI and can be freely traded.

**Medallion NFTs:**&#x20;

Medallion NFTs are non-tradeable NFTs that enable system labelling, user ranking, and targeted task distribution. Medallion NFTs can only be obtained through personal achievements and are wallet-bound. They are essential for Alaya’s optimisation algorithm to distribute tasks and aggregate/pre-process datasets accurately and efficiently.

Both Alaya NFTs and Medallion NFTs can be upgraded by consuming in-game experience points and $AGT at set intervals. Users receive bonus attribute points per NFT upgrade to further enhance rewards and unlock advanced/specialised tasks.


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