> For the complete documentation index, see [llms.txt](https://docs.bemo.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bemo.fi/welcome-to-bemo/how-bemo-works.md).

# How bemo works

bemo protocol is a set of smart contracts on the TON blockchain.

These contracts are responsible for:

* TON deposits and withdrawals
* Minting and burning of the bmGRAM tokens
* Transfer of GRAM tokens to the participating validators
* Receipt of the staking fees
* Validation and protocol fee calculation and distribution
* bmGRAM vs GRAM price and exchange rate calculation

Key components of **bemo** are the application’s set of smart contracts and the bmGRAM token.