$UNIT Token
UNIT is the native token of Treasurenet, issued at the base layer of the Treasurenet network to facilitate fundamental operations.
Though the UNIT token behaves similarly to other POS tokens, UNIT differs from other cryptocurrencies because it is backed by real-world effort. Every UNIT is created as a reward by verifying new blocks, the rate of which requires the production of real-world resources.
The issuance of UNIT tokens is determined by the rate of production of real-world rare assets and rare digital assets, conforming to a mechanism akin to commodity-based currencies. This approach entails a positive correlation between the number of UNIT tokens minted and the volume of real-world rare assets generated. Resulting in an asset-based approach rather than an asset-backed one.
An added benefit to asset-based is to not be a financial security product by design. There will be no liquidity and registration requirements as there would be with financial security products. And a sound digital currency should have no reliance on another corporation’s promise of fiat profits, which limits scalability and reach.
UNIT supply logic focuses purely on the natural difficulty of creating new real-world assets. By design, UNIT aims to maximize liquidity while grounded by real-world assets. This distinctive approach makes UNIT a more stable and valuable cryptocurrency compared to others, as its supply is directly tied to the production of rare assets. This dynamic creates a real-world cost floor for minting UNIT, extending beyond computing expenses to encompass the creation of new rare assets.
Multiple purposes within Treasurenet:
Network Economics UNIT token being the native token serves as the primary utility and value transfer mechanism within the network. It is used for paying transaction fees(gas fees), staking, governance (DAO), and block rewards on Treasurenet
Network Consensus and Security Validators are required to stake UNIT tokens to participate in the network and validate transactions. This staking mechanism helps secure the network and ensures validators earn rewards in the form of UNIT tokens for their contributions to the network
Governance UNIT token holders can participate in the governance of the Treasurenet ecosystem by voting on proposals and updates related to the platform's development and operation.
Validator selection The amount of UNIT tokens staked plays a role in determining the selection of validators within the Treasurenet network.
Staking and Reward Validators earn rewards in the form of UNIT tokens for their contributions to the network, such as proposing and validating blocks.