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The Synternet Network Token

Introduction​

Synternet’s mission is to create the Data Layer protocol – the leading open protocol for providing and consuming Web3 data. The Synternet token is the native cryptocurrency and protocol token of the Synternet Network. A protocol must have its own token for security, incentives, and governance.

Tokenomics design pillars​

Synternet tokenomics have been designed around these three complementary pillars:

  1. Enable the provision of Web3 data at scale and at sustainable pricing.
  2. Facilitate community governance to improve the protocol.
  3. Maintain the value of the Synternet token through the usage of the protocol.

Layers of the protocol​

The protocol consists of three main components: App Chain, Data Layer, and PubSub protocol. Synternet token is a vital component of both the blockchain and Data Layer.

An App Chain is an application-specific chain, which has the sole purpose of keeping the state within the application. Data Layer is the application itself that enables the supply of Web3 data to meet its demand. It is an economic overlay for the PubSub protocol. Finally, the PubSub protocol enables data streaming throughout the network.

On the Data Layer, various economic actors, engaged in the production, delivery, and consumption of the data, are making state transitions in the form of on-chain transactions. These transactions are sent to the App Chain and, after being confirmed by a set of Validators running a consensus protocol, they are added onto the blockchain.

Synternet token utilities​

The main utilities of the Synternet token are:

  • Security guarantee for the chain via staking, delegation, and slashing mechanisms
  • Security guarantee for the data layer through continuous staking, proof challenging, and slashing mechanisms.
  • Means of governance for the chain via proposals and voting.
  • Means of pay for the data layer through ensuring on the protocol level that if the data was delivered it will be paid for.
  • A store of value reflecting the ecosystem activity and its value creation.