The Functions Of TOP Token| Part 1
TOP, the native token of TOP Network, is essentially the glue that holds the ecosystem together. From incentives and rewards, to a method of payment for a multitude of services, TOP is a vital component of the ecosystem. So, what are some of the main functions of TOP token within TOP Network?
Let’s find out.
- Service Providers
TOP Network provides an array of decentralized cloud communications services, including Messaging, Voice Call, Video Chat, VPN, CDN, Live-Streaming, IoT data sharing and more. This list of provided services is already expanding to include things like social eCommerce and gaming, with many more possible industries in the future. TOP token is used as payment for all of these services.
- Smart-Contract Execution
TOP token is used as gas to pay for smart-contract execution.
- Decentralized File Storage and Database
TOP token is used to access TOP Decentralized Storage network.
- Lock-up Tokens In Exchange For Resources
TOP Tokens must be locked in exchange for resources like CPU, RAM, Bandwidth, and On-Chain Storage.
Users can stake TOP tokens and earn rewards in exchange for casting votes.
Holding TOP tokens allows holders to participate in governance. Token holders will be allowed to vote on various proposals.
- Deposits As Collateral
Service nodes and ledger nodes must first deposit a certain number of TOP tokens as collateral to be granted the right to provide services and mine tokens.
- Mining Rewards
Miners are rewarded via TOP token in exchange for securing and updating the blockchain. Using the same native token which is used for deposits to autonomously reward miners properly aligns incentives, and helps build a robust network of mining nodes.
- In-app Purchases and User Incentives
TOP will be the primary token for use within DApps built on TOP network. Depending on the DApp, TOP could be used to purchase in-app goods and services, or just as a means of sending money to friends and family. As a simple example, TOP could be used to pay for in-game items within a gaming DApp built on TOP Network.
DApp developers could also use TOP tokens or TRC-10 contract tokens to find innovative ways to incentivize people to use their DApps.
Even if a token has many functions, without a lot of users, most of these functions would see little use. While this is an issue faced by many other projects, TOP enjoys the massive advantage of having a large pool of existing users to draw from. When TOP Network’s 60 million users from its previously developed apps are ported over, the functions of TOP token can actually be put to use, thereby creating natural demand and increasing liquidity. In part 2, we will discuss how TOP Network employs a few methods to reduce the circulating supply, which can ultimately lead to increased demand.