NUM Utility
Last updated
Last updated
As the native tokens of Numbers Protocol, NUM is the most important incentive tool to encourage users to maintain the good provenance of digital media in the network. Below is the value flow diagram of the NUM token ecosystem (check its on-chain provenance).
The major utilities of NUM are listed below.
Numbers Mainnet is a subnet function as Layer-1 blockchain solution. It defines its own networking and provides its own security, as well as its own execution logic and fee structure. Facilitating on-chain data archiving, revenue sharing and NFT minting, Numbers Mainnet plays an important role in facilitating Numbers Protocol’s core functionality. It also allows for native transactions of NUM, the native token of the Numbers Protocol network.
Following through with the 4th NumbersDAO meeting result, Numbers network will migrate gradually from permissioned PoS to permissionless PoS with delegation support. This change will be implemented 12 months after the DAO meeting, approximately July 2024. After this implementation, NUM tokens can be delegated to validators who are securing the Numbers Mainnet utilizing a mechanism called delegated proof-of-stake (DPoS). This enables any NUM token holder to help secure the blockchain. In return, they share in the validator rewards given to the validator they are delegating their NUM tokens to.
Community-focused and decentralization are core values of Numbers Protocol. As a reflection of our values, NUM token holders can stake their tokens to become members of the Decentralized Autonomous Organization (DAO). As DAO members, they are granted the privilege to voice their opinions, participate in voting processes, and influence the direction and policies of the Numbers Protocol. More details can be found in the “Becoming A DAO Member” session.
The NUM token acts as a form of digital currency within the Numbers Protocol ecosystem. Developers and users can utilize NUM as payment tokens for accessing ecosystem apps, notably enabling pay-as-you-go APIs. This ensures seamless transactions and fosters an environment where innovation is continuously incentivized. One example of such service can be observed in Capture Docs.
In the digital age, ensuring content authenticity is crucial. The Numbers Protocol empowers users to stake NUM tokens, allowing them to act as Content Verifiers. These verifiers are evaluated by their profession, reputation and contributions. Through a decentralized, community-driven process, these verifiers collaboratively confirm the truthfulness of content sources, ensuring that information shared on the platform is both transparent and trustworthy. This collective approach harnesses the diverse knowledge of the community, minimizing the chances of misinformation.
While content verifiers earn rewards for accurate verifications, there's a measure of accountability in place. If they incorrectly Verify content, they risk losing some or all of their staked NUM. To manage workflow, verifiers can authenticate only a limited amount of content in a specified period of time. However, increasing their staked NUM allows them to expand this verification capacity, creating a system that balances incentives with diligent oversight.
In addition to the existing utilities of NUM, the Numbers Protocol has recognized the inherent need for robust and decentralized storage solutions, ensuring data resilience and accessibility. Users can offer their excess storage capacities to the Numbers users, serving as decentralized storage nodes. In return for providing this valuable resource, they are compensated with NUM tokens. This mechanism ensures data redundancy and fault tolerance, contributing to the holistic development of the Numbers Protocol ecosystem. As Numbers Protocol is a provenance protocol instead of a storage protocol, the underlying technologies are supported by IPFS and Filecoin.
As quality and stability are key factors to the success of a content network like Numbers Protocol, the implementation timeframe of decentralized Content Verification and Accessibility shall depend on the network growth and the decisions from DAO.