$NOIA Token Economy

$NOIA Token

The $NOIA token is the gas that facilitates the value-based economy.

All of Syntropy's technologies and concepts translate into value captured by our native digital asset $NOIA, allowing this ecosystem to create its decentralized economy supported by tens of thousands of community members running node infrastructure. All connections and data sent through any device are accounted for in tokens. $NOIA represents the unit of value derived from an Internet relay and its intrinsic value within the Syntropy ecosystem.

The $NOIA token has five main utilities:

• Providing the means to permissibly exchange utility tokens for using the network services and fairly rewarding the supplier of said services.
• Providing payment fees for all transactions results in a stable blockchain network.
• Supporting the growth of Syntropy network infrastructure by providing incentives for DARP relay nodes of various caliber
• Governing the economy through the Proof-of-Stake consensus.
• Securing the economy by financial staking, ensuring all participants in the network are incentivized to perform to the best of their efforts.

Economic Value Distribution Model

The $NOIA token enables a trustless, decentralized blockchain-based economy, secured through a staking mechanism that ensures fairness between those sharing and those using spare network bandwidth. Programmable token supply and smart contracts allow for the introduction of incentive mechanisms, such as rewards for nodes participating in consensus as well as a reward redistribution pool for the network infrastructure nodes.

This new open internet economy helps to align the incentives of all system participants and create a new valuable interconnectivity layer over the public Internet.

Syntropy Overview

Within the Syntropy network, payments and validity of service delivered are confirmed and governed by the PoS consensus. Nodes, who contributed to governance, receive an inflationary reward for their work. Financial staking is mandatory for these nodes to secure against possible security breaches.

Validators

Validators play a critical role in protocol, such as block production and the finality gadget. Validators need to ensure high communication responsiveness and build a long-term reputation of reliability. They also must stake their tokens, as a guarantee of good behavior. The stake is slashed whenever a deviation from the protocol is found. In contrast, they get rewarded based on their staked token amount as incentivization. Any node can offer itself as a validator candidate. However, for technical and operational reasons only a fixed number of validators can be elected.

The roles of a validator node:

• Stake tokens;
• Govern the Syntropy chain;
• Produce & finalize blocks;
• Collect transaction fees.
• Govern the relay network by performing Proof-of-Uptime and Proof-of-Bandwidth validation;
• Health-score evaluation and reward calculation for relay nodes.

Relay Network Economy

Income from data relaying service is the main source of income for every relay node running DARP.

Syntropy establishes the Reward pool (RP) as an incentive redistribution mechanism within the Syntropy network. The Reward Pool pays fixed percentage returns to all nodes, based on their health. Fosters easier adoption of the Syntropy network through initial subsidies.

A significate percentage of all data relaying transaction value is transferred to the RP. Relay nodes who cannot earn significant returns from data relaying are still getting rewards for their uptime.

Relay Nodes

The roles of a relay node:

• Run DARP to securely interconnect with other Relays and Clients;
• Find paths on the Syntropy network;
• Relay data through the Syntropy network and earn data relaying income;
• Run Proof-of-Uptime (PoU) and earn uptime-based rewards from the Reward pool;
• Run Proof-of-Bandwidth (PoB) to withdraw data relaying income;
• Stake tokens for additional benefits and security.

Disclaimer

The details of the tokenomics, consensus protocol, blockchain implementation, etc. may change depending on conditions in the current regulatory, financial, and legal environment, and other technical considerations. See the full disclaimer in the Open Internet Economy Tokenomics paper.