4. WCN Tokenomics | World Compute Network

The WCN Token is a critical component of the World Compute Network (WCN) ecosystem. It plays a central role in transactions, governance, and incentivizing participation within the network. This section provides an in-depth look at the WCN token, including its overview, distribution, staking mechanisms, and governance model.

4.1 ERC20 Token Overview

The WCN token is an ERC20 token, which means it is built on the Ethereum blockchain and adheres to the ERC20 standard. This standard ensures compatibility with a wide range of Ethereum-based applications and wallets, facilitating seamless interactions within the ecosystem.

Token Standard: ERC20 is a widely adopted standard for creating and managing tokens on the Ethereum network, ensuring interoperability and security.
Smart Contracts: The WCN token operates through smart contracts that manage its issuance, transfer, and utility within the WCN network.

4.2 Token Distribution and Allocation

The distribution and allocation of WCN tokens are designed to ensure fair and effective utilization across various aspects of the network. The following outlines the key aspects of the token distribution.

4.2.1 Initial Distribution

Liquidity Pool (LP): 95% of the WCN tokens will be added to the Liquidity Pool (LP) to ensure market stability and availability. There will be no token sale, no presale, and no separate allocation for the team or advisors.
5% supply is reserved for Centralized Exchange Listings

Tokens for this reserve will be acquired by purchasing them directly from the market, reinforcing the token’s value and stability.

4.2.2 Ongoing Allocation

Community Rewards: Tokens are distributed as rewards to active participants and contributors within the network. This includes node operators, developers, and users who contribute to the ecosystem.
Governance and Staking: A portion of tokens is reserved for governance participation and staking rewards, encouraging users to engage in decision-making and support network operations.
Development Fund: Tokens are allocated to support ongoing development, research, and ecosystem growth. This ensures that the network continues to evolve and adapt to new challenges and opportunities.

4.3 Staking and Rewards

Staking is a mechanism that allows WCN token holders to lock up their tokens in support of network operations and governance. In return, they earn rewards for their participation.

4.3.1 How Staking Works

Locking Tokens: Users can stake their WCN tokens by locking them in a smart contract. This process supports network operations such as transaction validation and governance.
Rewards Distribution: Stakers receive rewards in the form of additional WCN tokens. The rewards are distributed based on the amount of tokens staked and the duration of staking.

4.3.2 Benefits of Staking

Network Security: Staking contributes to the security and stability of the network by incentivizing participants to act honestly and maintain the integrity of the blockchain.
Governance Participation: Stakers often gain enhanced voting power in governance decisions, allowing them to influence the direction and policies of the network.
Earn Passive Income: By staking tokens, users can earn a passive income stream through rewards, adding value to their holdings over time.

4.3.3 Staking Mechanics

Staking Pools: Users can participate in staking pools, where their tokens are combined with those of other participants to increase the likelihood of earning rewards.
Unstaking: Tokens can be unstaked, but there may be a waiting period or penalty associated with early withdrawal to prevent abuse and ensure network stability.

4.4 Governance Model

Governance within the WCN ecosystem is designed to be decentralized and community-driven. Token holders play a crucial role in shaping the future of the network through voting and decision-making processes.

4.4.1 Voting Mechanism

Proposal Submission: Community members can submit proposals for changes, upgrades, or new initiatives within the network. Proposals are reviewed and discussed by the community.
Voting Process: Token holders can vote on submitted proposals using their WCN tokens. Voting power is typically proportional to the number of tokens held or staked.

4.4.2 Governance Decisions

Protocol Upgrades: Votes on protocol upgrades determine the implementation of new features or changes to the network’s underlying technology.
Policy Changes: Decisions on network policies, including reward distribution and resource allocation, are made through governance votes.
Community Initiatives: The community can propose and vote on initiatives that contribute to the growth and development of the WCN ecosystem.

4.4.3 Role of WCN Tokens in Governance

Influence: WCN tokens provide holders with the ability to influence key decisions and drive the network’s development.
Participation: Active participation in governance is encouraged, as it ensures that the network reflects the collective interests and priorities of its stakeholders.

Last updated 3 months ago

The WCN Token is a critical component of the World Compute Network (WCN) ecosystem. It plays a central role in transactions, governance, and incentivizing participation within the network. This section provides an in-depth look at the WCN token, including its overview, distribution, staking mechanisms, and governance model.

4.1 ERC20 Token Overview

The WCN token is an ERC20 token, which means it is built on the Ethereum blockchain and adheres to the ERC20 standard. This standard ensures compatibility with a wide range of Ethereum-based applications and wallets, facilitating seamless interactions within the ecosystem.

Token Standard: ERC20 is a widely adopted standard for creating and managing tokens on the Ethereum network, ensuring interoperability and security.
Smart Contracts: The WCN token operates through smart contracts that manage its issuance, transfer, and utility within the WCN network.

4.2 Token Distribution and Allocation

The distribution and allocation of WCN tokens are designed to ensure fair and effective utilization across various aspects of the network. The following outlines the key aspects of the token distribution.

4.2.1 Initial Distribution

Liquidity Pool (LP): 95% of the WCN tokens will be added to the Liquidity Pool (LP) to ensure market stability and availability. There will be no token sale, no presale, and no separate allocation for the team or advisors.
5% supply is reserved for Centralized Exchange Listings

Tokens for this reserve will be acquired by purchasing them directly from the market, reinforcing the token’s value and stability.

4.2.2 Ongoing Allocation

Community Rewards: Tokens are distributed as rewards to active participants and contributors within the network. This includes node operators, developers, and users who contribute to the ecosystem.
Governance and Staking: A portion of tokens is reserved for governance participation and staking rewards, encouraging users to engage in decision-making and support network operations.
Development Fund: Tokens are allocated to support ongoing development, research, and ecosystem growth. This ensures that the network continues to evolve and adapt to new challenges and opportunities.

4.3 Staking and Rewards

Staking is a mechanism that allows WCN token holders to lock up their tokens in support of network operations and governance. In return, they earn rewards for their participation.

4.3.1 How Staking Works

Locking Tokens: Users can stake their WCN tokens by locking them in a smart contract. This process supports network operations such as transaction validation and governance.
Rewards Distribution: Stakers receive rewards in the form of additional WCN tokens. The rewards are distributed based on the amount of tokens staked and the duration of staking.

4.3.2 Benefits of Staking

Network Security: Staking contributes to the security and stability of the network by incentivizing participants to act honestly and maintain the integrity of the blockchain.
Governance Participation: Stakers often gain enhanced voting power in governance decisions, allowing them to influence the direction and policies of the network.
Earn Passive Income: By staking tokens, users can earn a passive income stream through rewards, adding value to their holdings over time.

4.3.3 Staking Mechanics

Staking Pools: Users can participate in staking pools, where their tokens are combined with those of other participants to increase the likelihood of earning rewards.
Unstaking: Tokens can be unstaked, but there may be a waiting period or penalty associated with early withdrawal to prevent abuse and ensure network stability.

4.4 Governance Model

Governance within the WCN ecosystem is designed to be decentralized and community-driven. Token holders play a crucial role in shaping the future of the network through voting and decision-making processes.

4.4.1 Voting Mechanism

Proposal Submission: Community members can submit proposals for changes, upgrades, or new initiatives within the network. Proposals are reviewed and discussed by the community.
Voting Process: Token holders can vote on submitted proposals using their WCN tokens. Voting power is typically proportional to the number of tokens held or staked.

4.4.2 Governance Decisions

Protocol Upgrades: Votes on protocol upgrades determine the implementation of new features or changes to the network’s underlying technology.
Policy Changes: Decisions on network policies, including reward distribution and resource allocation, are made through governance votes.
Community Initiatives: The community can propose and vote on initiatives that contribute to the growth and development of the WCN ecosystem.

4.4.3 Role of WCN Tokens in Governance

Influence: WCN tokens provide holders with the ability to influence key decisions and drive the network’s development.
Participation: Active participation in governance is encouraged, as it ensures that the network reflects the collective interests and priorities of its stakeholders.