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Token Economics

Demand โ€“ who will want the Subsocial token?#

Participants within the Subsocial ecosystem will need to acquire Subsocial tokens in order to interact with the platform. The following list outlines typical groups of people who will want tokens:

  • Users will be required to spend tokens to perform transactions, or burn tokens to generate energy (NRG) to perform transactions
  • Developers of applications that wish to improve the UX of their application by paying the token fees for their users
  • Content creators can use tokens to get their content promoted
  • People who want to participate in governance need tokens (this is to shape the development of the Subsocial ecosystem in a decentralized way)
  • Users who want to get access to special content (private spaces)
  • Collators need tokens to run a collator node for the Subsocial parachain
  • Staking to collators
  • Users who wish to purchase social tokens may need Subsocial tokens
  • Staking to creators (this idea is not finalized)

Supply โ€“ who will be rewarded by the network?#

There are certain participants within the network, known as collators, who produce blocks for the network, therefore these participants will be rewarded with Subsocial tokens. This will be a form of inflation paid out from the block reward. The treasury will also be funded by this inflation.

We also considered whether the following actors within our ecosystem should be rewarded with native Subsocial tokens, but may put the emphasis on these actors creating their own tokens on Subsocial. This means that spaces within Subsocial will choose how to reward the following:

  • Content creators
  • Publishers
  • Influencers
  • Moderators

Token utility#

Subsocial tokens have a number of different uses that we outline below. The main use for tokens will be burning them to create energy (NRG) to perform actions on the network. Please note that some of these features are still in development.

  • Performing transactions
  • Content monetization
    • Tips
    • Subscriptions
    • Pay-Per-View
    • Selling or renting out your spaces or posts
  • Deploying smart contracts
  • Minting social tokens
  • Voting in governance

See the Lightpaper for greater details.