The Treasury
The Tagion Treasury will serve as the primary source of compensation for contributors, utilizing its holdings of TGN tokens to fund ongoing network operations. Initially, the Treasury will draw from its allocated TGN reserves to support the system and reward contributors. However, since these reserves are finite, the Treasury cannot sustain the network indefinitely through this allocation alone.
In the event that the Treasury exhausts its initial holdings, the Community could opt to issue new TGN tokens to cover expenses. However, issuing additional tokens would dilute the existing supply, which may not be in the interest of the community. To avoid this outcome, a sustainable and balanced funding model should be established well before the Treasury’s reserves are depleted, ensuring the network's long-term sustainability.
The proposed model assumes that users will ultimately cover the ongoing costs of compensating relevant contributors through usage fees, which will be paid into the Treasury and then distributed to node operators, developers, and other contributors.
From the Treasury's perspective, fees will be accumulated through three primary channels, namely:
Fees paid by users through one of the above four channels establish a direct link between the network's utility and the resources required to maintain and improve it. By aligning the cost of upkeep with the network's usage, this model ensures that those who derive value from the network contribute proportionally to its maintenance.
In this way, the Tagion Treasury will transition from relying solely on its initial reserves to a more self-sustaining model, where ongoing operational costs are funded by the network’s users. This reduces dependency on finite reserves and avoids the need to dilute the token supply, promoting a healthier, long-term economic framework for the network.
