SHER token is the governance token for the Sherlock protocol. The governance functions of the SHER token will increase over time as the protocol matures. In the short-term, the SHER token will be used as incentives for stakers and protocols as well as for compensation to the security team. In the long-term, the SHER token is expected to play a role in managing which Watsons are assigned to which protocols, as well as other critical protocol parameters.