This article was first published on Centrality - Medium
The dual token economy: explaining CENNZ and CPAY
CENNZnet used a unique dual token system in order to help developers, users and token holders get the best from the network. This is a refresher on how the tokens work and the economics behind how it benefits the ecosystem.
CENNZnet has two tokens
CENNZ is the staking token
- The main validation token in the network.
- CENNZ will be required to join CENNZnet as a validator and contribute to securing and governing the network.
CPAY is the spending token
- CPAY will be used to pay transaction fees on the network
- It will also be used as the reward for stakers (validators and nominators)
- The spending token is designed to be stable and predictable for users and businesses who operate on CENNZnet
Why do we have two tokens?
Our intention has always been to make CENNZnet as useful as possible. How do we do this? We build a great network that developers want to use to build awesome applications that users will want to adopt.
Our token economy has therefore been designed with developers in mind. If you’re building an application, you want predictable costs so you can understand how to make a profit. In popular blockchain systems today, the costs of development are very variable and subject to external factors which makes it hard to plan ahead. For example, if you’re building an application and the network gets congested for a reason totally unrelated to your application, the cost of running the app goes up. We want to avoid this costly inconvenience and we think we have a great way of achieving both predictable costs and optimal usage.
To keep our dev costs stable we use 2 separate tokens, CENNZ to maintain the security of the network and keep transactions going, then CPAY as the stable gas token used for transaction costs on ...
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