Darwinia aspires to establish itself as a decentralized cross-chain platform for blockchain applications. Its token plays a crucial role in this decentralized ecosystem, serving to incentivize block authors, cover transaction fees, and stimulate community governance. This design has already been validated by the Polkadot and Ethereum. The token design of Darwinia's chain is inspired by those well-known projects.
Native Token
The Native Token is akin to ETH in Ethereum or DOT in Polkadot, allowing users to pay for cross-chain message transactions, engage in on-chain governance, or lock tokens to operate a collator node. This native token has a fixed cap and a predetermined inflation rule. Take the Darwinia chain as an example, the native token is denoted as RING. It can be utilized for network fees, as collateral for staking, within the relayer fee market, and for governance. The initial supply of RING is set at 2 billion. Once the initial supply has been fully circulated, the block reward for year
N will be 1 - (99 / 100)^sqrt(N) of the total remaining issuable, up until the point where the hard cap of the supply is reached, which stands at 10 billion.Network Native Token
Darwinia Chain
Symbol | Decimal | Initial Supply | Total Supply |
RING | 18 | 2 billion | 10 billion |
Crab Chain
Symbol | Decimal | Initial Supply | Total Supply |
CRAB | 18 | 2 billion | 10 billion |
Pangolin Chain(Test)
Symbol | Decimal | Initial Supply | Total Supply |
PRING | 18 | 2 billion | 10 billion |
Token Use Cases
The native token of the Darwinia network plays several crucial roles:
- Transaction Fees
The Darwinia network charges fees for transactions and smart contract deployments. These fees are paid using the native token. Although the fees are relatively low, they are sufficient to deter malicious actors from launching attacks or filling up the ledger with unnecessary data.
- Network Security
One of the primary uses of the native token is to secure the network through an environmentally-friendly consensus mechanism. Token holders can participate in this process by selecting a collator and locking their tokens for a specific period. The rewards they earn are proportional to the number of tokens they delegate and the duration of the lock-up period. Additionally, token holders can also earn a share of the network's transaction fees by participating as collators.
- On-chain Governance
Darwinia is a fully decentralized ecosystem without any leaders. All decisions related to the network are made by the token holders through on-chain governance. Token holders are free to propose changes or improvements to the network's policies and vote on them.
- Payments
Transactions on the Darwinia network are typically faster and less expensive than those on Ethereum, making Darwinia a popular choice for payments.
Token Inflation model
We are in the process of designing a new inflation model, and we welcome your participation in its development at https://github.com/darwinia-network/darwinia/discussions/1163.