If you’re interested in SWTH tokenomics and it's use cases, jump straight in.What is the Switcheo Token?
SWTH is the native token of the Switcheo TradeHub Protocol, a custom built sidechain. This is the underlying blockchain that Demex runs on. The TradeHub protocol utilises a Proof of Stake (PoS) consensus mechanism that differs from Bitcoin's Proof of Work. In Bitcoin’s POW mechanism, miners compete to solve computationally intensive puzzles to validate transactions and create new blocks. This is inaccessible, non-scalable, and encourages centralization among large miners with greater mining power.
With PoS, validators who run nodes serve a similar role to miners, except that instead of mining, they stake SWTH on the network. Validators are randomly selected to propose a new block. The probability of them being selected is proportional to their total stake.
When you stake SWTH, you delegate the voting power of your tokens to your chosen validators.
As of 19th Feb 2021 11:07 AM SGT,Total Supply*: 1255 Million SWTH TradeHub Supply: 1106 Million SWTH 76.86% of SWTH supply is bonded (i.e staked)**
*Total Supply includes Neo-wrapped SWTH which has yet to be converted to native SWTH on the TradeHub Chain. If you need to convert your nSWTH (aka SWTHOLD), check out this guide.
**Stakers have an unbonding period of 30 days before they may retrieve their funds. This ensures that price volatility of SWTH is reduced, and facilitates long term development and safety of the protocol.The Value of SWTH
Ultimately, Switcheo TradeHub is a public entity owned and controlled by all SWTH holders, whose value captured is distributed back to token holders and users. This is achieved via the following mechanisms:
SWTH delegators are able to vote, submit, and implement proposals to change the parameters and features of the TradeHub Protocol. This ensures that TradeHub operates as a full Decentrali...