Token Economy

This governance area covers everything to do with our native network token, the TGN. Eventually it will describe everything from its purpose to its issuance and limitations. Quite a bit has already been published about this in our Tokenomics Paper (find it archived here in version 2024 and version 2023), and until its content has been transferred and superseded by what you find here, please download and consult it at the link above.

For now, read on below and find an overview of the elements of our token economy already covered in the menu on the right hand side.

Balancing resources and needs

Contributors (see Glossary) play a vital role in ensuring the sustainability and growth of the Tagion network. Their efforts span across maintaining and safeguarding the network’s security, efficiency, and reliability; driving its evolution by implementing upgrades, addressing vulnerabilities, and introducing new features; and fostering adoption by creating educational materials and onboarding users.

The Tagion network’s success depends on the ongoing participation of contributors. However, without an adequate reward model in place, there is a risk that participation could decline over time. Contributors typically invest significant time, expertise, and resources into maintaining and improving the network. If these efforts are not recognized and rewarded, contributors may reduce their involvement or disengage entirely, posing a threat to the network’s robustness, stability, and ability to evolve.

While some individuals or entities may contribute out of goodwill, ideological alignment, or interest in supporting their own applications, these motivations may not be sufficient to ensure sustained long-term participation. To ensure the network's continued resilience and performance, it is essential to establish a framework that both acknowledges the value of contributors' work and incentivizes their long-term engagement. This framework should aim to compensate contributors fairly for their efforts, ensuring they remain motivated.

A key tool for ensuring the continued participation of contributors is the use of the network’s native token, TGN, as a form of compensation. TGN can serve as both an incentive and a mechanism to align contributors’ interests with the network’s growth. By compensating contributors in TGN, their success becomes directly tied to the network's adoption and value appreciation, encouraging long-term engagement and ongoing contributions to the network.