Network Whitepaper | Part 9 — Token Economic Model

By Link Daniel

Original Publication Date: January 21, 2021

We introduce a token into our network as a way to incentivize early stakeholders to bootstrap the network and allow them to govern the direction of the network for the future. The plan is to distribute the token among the widest group of stakeholders over time who have provided value in a verifiable way. Anyone who demonstrates that they have performed work that increases the value of the network that needs to be done, will be able to receive tokens.

As a general principle, we will introduce proof of network, a mechanism by which anyone from anywhere in the world can participate and get the token if they verifiably demonstrate that they have added value to the network. As the network evolves, the community of stakeholders that will govern the protocol may evolve the proof of network mechanism. In fact, after genesis distribution, the tokens will be distributed according to proof of network, which in turn the stakeholders that govern the protocol may evolve. The goal is to create a self-sustaining network in the virtual world and the token is merely a means to get there. The purpose of the token is to create an incentive mechanism by which the network will be bootstrapped and then use the token to secure the network and allow all stakeholders to vote on the future direction of the protocol. We will release a paper in the future that will outline the proof of network mechanisms.

With the onset of the network protocol launch, we will continuously broadcast problems that have to be solved. Whoever manages to solve the problem and provide solution to the problem will get tokens in return for their work.

With the launch of the token, we will create Network Foundation, a decentralized foundation that is focused on bootstrapping the network according to the principles laid out in this paper. We will share further details about the architecture of the Network Foundation in a separate paper.

Initially, Link and the Network Foundation will help to distribute the token. As the network expands, the trust will be distributed and the reliance on Link and Network Foundation slowly shifted towards the wider community. As time goes on, all stakeholders through means of governance will decide and approve upon problems that need to be solved in order to grow the network and maintain its security.

Network will start as a decentralized autonomous organization from inception. Link and the Network Foundation are committed to making the network as decentralized and distributed as possible. The node operators who will be running the network will need to stake the token in order to earn network fees that are being generated from any transactions that run through the network. In the future, the network will use the token to pay network node operators who will handle the connection from any single brain computer link to the virtual world through the network.

The token will carry the symbol N and supply will be limited to 1,000,000,000. There will be no mint or burn function. As the Bitcoin network is not capable of issuing tokens, we will issue the first version of the token on the Ethereum network, as an ERC-20 token. We also plan to create an NFT with symbol NET that will become the identity token and act as a passport to access the network when individuals will be able to use their brain computer link to connect to the virtual world. We will release a paper on the identity layer of the network in due time. In the future the token may be upgraded to enable it to interact with smart contracts and brain computer systems. We will strive to integrate with other organizations to make the network stronger. The supply will never be changed and no additional tokens will be issued under any circumstances.