Token
Overview
The Swan Token within the SwanChain ecosystem appears serve multiple utilities, enhancing the functionality and governance of the platform. From the provided diagram, here's a breakdown of the Swan Token's utilities:
Payment and Incentive Mechanism
Marketplace Transactions: Users can purchase SwanChain products and services using Swan Tokens, making it the primary medium of exchange within the marketplace.
Compute Resource Provision: Compute providers stake Swan Tokens to offer their computational resources to the network. In return, they receive rewards in Swan Tokens for the compute power they provide, creating a cyclical incentive structure.
Auction Participation
Auction Engine Engagement: Validators in the auction engine stake Swan Tokens to participate in auction automation, ensuring the proper functioning of the marketplace's bidding and resource allocation processes.
Network Governance
DAO Participation: Stakers of the Swan Token have governance rights in the SwanChain DAO (Decentralized Autonomous Organization), allowing them to vote on proposals and decisions that steer the project's development and operations.
Treasury Management: The SwanChain DAO controls the treasury, which collects fees from the ecosystem's operations. A portion of these collected fees can be used for various purposes, including burning tokens to reduce supply, thereby potentially increasing value, and buybacks.
Fee Distribution and Tokenomics
Fee Collection: A portion of the transaction fees collected within the platform is distributed back into the ecosystem. For instance, 75% of fees collected could be directed to the treasury, while 25% could be used for token buybacks or other deflationary mechanisms.
Validator Penalties: Validators who do not act in the network's best interest can be slashed, meaning a portion of their staked Swan Tokens may be burned as a penalty for malicious actions or failures.
Total Supply: 1,000,000,000 Tokens.
Swan Token Value Flow
The Swan token has 2 stages:
Swan Testnet
Swan Testnet Token (Swan) is used on Swan Testnet. The Swan Testnet is designed to Launch in Q4 2023.
Swan Mainnet
Swan is a L2 blockchain on Ethereum with Rollup technology.
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