💰Economics
Last updated
Last updated
$VIPR serves as the native token of the Viper Network, fulfilling crucial roles in facilitating transactions, incentivizing participants, and ensuring the security and governance of the network. Building upon the mechanics described earlier, the following provides a concise summary of the token's key use cases:
The value of tokens issued by servicers mirrors the overall worth of the network and its services, showing how big and popular it is. As the network expands, this link between token and network value encourages more investment in new nodes.
In simpler terms, when token values increase, more people invest in and enhance the network. This, in turn, causes token values to go up again. It's like a cycle – higher token value leads to more network growth, and more growth increases token value. This feedback loop is shown in the flywheel below.
In the Viper Network, a stake-based access model is employed to ensure the integrity and reliability of network participants. Under this model, participants are required to stake a certain amount of native cryptocurrency tokens as collateral to gain access to network functionalities and benefits. The stake acts as a financial commitment, incentivizing participants to uphold network rules, provide quality services, and adhere to protocol guidelines. Additionally, staked tokens serve as a form of security against malicious behavior, discouraging fraudulent activities and reinforcing trust within the ecosystem. Through this stake-based approach, the Viper Network fosters a secure and sustainable environment where participants are incentivized to contribute positively to the network's growth and stability.
