How Do Credit Protocol Tokens Work With Apps?

Since the first mainnet example apps are about to go live, I figured this would be a good time to explain how tokens work, and how app providers can acquire and use them.

Token Usage

  • Tokens are staked to a UCAC
  • Each token gives a certain number of transactions per hour
  • A transaction is a write operation (updating the balance of a debt between two parties)
  • The number of tokens needed to do a transaction can be updated by Blockmason currently — in the future, we will make this community or market-driven
  • Tokens are not "burned" when used, they simply have to wait an hour to be usable again

Token Staking

  • Tokens can be staked by ANYONE who owns tokens
  • Tokens are staked to UCACs
  • UCAC operators can choose to reward stakers if they want (example code for that coming soon)
  • Staking actually transfers tokens to the Credit Protocol contract (to prevent double-spend), but they can be returned to users at any time

How Do You Get Tokens for Apps?

  • Have them from the initial token sale
  • Buy them from someone else in a private sale or on a secondary market
  • Receive them in an airdrop (details to follow)

We at Blockmason are excited to see this all goes, and we are going to monitor early usage of tokens quite closely to figure out the best mechanisms for balancing the Credit Protocol ecosystem going forward.