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description: basic functions and tasks of the NIFTSY token
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# The architecture of the Project and the role of the Token

So, the Project’s architecture looks like this.

![](https://333832744-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-McHCU838dvxE6AYohpm%2F-MeVOXqPNbmtKVaPUMO-%2F-MeVQw3PI_KeWpQT99Lc%2F%D0%A1%D0%BD%D0%B8%D0%BC%D0%BE%D0%BA%20%D1%8D%D0%BA%D1%80%D0%B0%D0%BD%D0%B0%202021-07-13%20%D0%B2%2019.15.00.png?alt=media\&token=a5b0072a-595f-4216-976b-aec6d038a466)

It is important to note the following principles of model formation. They are listed below.

1. **The links between** “Protocol - Oracle – Index” are formed initially from the bottom up, but after that the Project works from all three elements.
2. **Oracle and Index** can be created outside the Project, but Protocol cannot.
3. **All three entities** are based on primitive transactional reputation models, that means, they consider a) quantitative; b) temporal; c) subjective criteria.
4. **All elements** operate on the basis of openness, decentralization, and consider all entities (scripts, AIs, users, etc.) as possible actors in the Project.
5. **All three entities** interact with each other through the Token functionality which is a necessary element of the Project ecosystem.

The features of the Token are discussed in more detail below.
