Tokenomics

BCUT is the native utility token for the bitsCrunch Network. Its primary function is to facilitate smooth operations within the network, and it is intended solely for use as a utility token. The secure functioning of the bitsCrunch ecosystem relies on a combination of cryptographic techniques and economic incentives to drive adoption and ensure network security. Key functions of the token include:

• Incentive Alignment: The token acts as a motivational tool. Because Operators, Delegators, Indicators, and Contributors must stake their tokens, they have skin in the game, which is anticipated to foster collaboration and commitment among them to help grow a secure and decentralized network.

• Network Security: Through mechanisms like staking, our token can add layers of security, making malicious activities costly and thereby protecting the network's integrity.

• Independence: Having its own token ensures the network's autonomy and reduces reliance on external entities or tokens. It detaches the ecosystem from the volatile dynamics of external cryptocurrencies and aligns rewards directly with sustainable actions. It aligns the token's value and functionality closely with our network's objectives and performance.

• Economic Design: The introduction of the token empowers our network with the flexibility to sculpt an economic framework that mirrors our distinctive ecosystem's demands and ethos. For instance, by managing the issuance of BCUT, DAO can regulate its availability, ensuring it's aligned with growth milestones. We could incentivize early adopters with a more generous distribution initially, then taper the issuance rate to control inflation, or introduce deflationary tactics such as token burns to enhance value as the network matures. All these decisions will be formally taken through the governance process.

• Governance: The token will enable decentralized governance, where token holders can propose and vote on proposals and changes to the network's protocol

• Discounting: Data consumers can stake the token to get a discount on the query pricing.