The LOOM token is used for staking, transaction fees, and bonding.
Validators must stake LOOM tokens in order to run their nodes, and delegators can stake LOOM tokens to validators in order to get a share of the block rewards.
Transaction fees serve two important purposes. They ensure that validators that run Basechain nodes can be fairly compensated for the running costs of their servers, and they help prevent spam transactions.
Developers can spin up their own blockchains using the Loom SDK, and connect them to Basechain to take advantage of its interconnections with Ethereum, TRON, and Binance Smart Chain. To disuade malicious behavior these standalone chains will have to bond LOOM tokens on Basechain before they can use its transfer gateways.
Basechain Wallet is designed to interact with Loom Network's Basechain, and allows you to deposit and withdraw assets from Ethereum, TRON, Binance Chain, and soon Binance Smart Chain. It also lets you transfer NFTs to other users on Basechain.