Particle Network Token

At the center of Particle Network's economic model sits our native Universal Gas Token.

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This section refers to an upcoming product. As such, although our concept and initial design are finalized, some changes might still occur and be reflected accordingly.

Token-centric economic model

Particle Network sits at a unique spot in the Web3 ecosystem.

Simultaneously serving the creators of dApps and their users, Particle falls under a Business-to-Business-to-Consumer (B2B2C) framework. Although Particle Network's previous SaaS strategy served the project well, allowing Particle to reach a vast number of developer partners and their end-users, the project understands that developers and projects are our most important partners, and we need to best serve them while sustaining the network's growth.

As such, the introduction of new components to the Particle Network ecosystem pivots to a model that is 100% free for developers, instead relying on an economic model powered by the Particle Network Token, native to the Particle Chain.

Utility

Particle Network’s token-centric model transforms the system from one charging developers per monthly users to one that captures and distributes value. Within this new model, the Particle Network Token serves several key functions, all of them leading to positive network and value accrual effects.

Some of the Particle Network Token’s initial and projected use cases include:

  • Unified gas token: It can be used as a gan token to executing transactions and smart contracts on various blockchain networks. This provides convenience to users, as they can use a single token to cover transaction costs across different chains. It also provides privacy, coupled with our Confidential Paymaster.
  • Proof fee token: The token is also used to pay the fees associated with generating cryptographic proofs, in particular for JWT proofs in the Confidential Login system. These proofs are required for various purposes, such as validating transactions and interactions on the blockchain.
  • Pledge: Intent Solvers can use the Particle Network Token to demonstrate their commitment to participating in the competition for intents. Pledges serve as collateral to ensure the integrity and competitiveness of the intent marketplace.
  • Security: The Particle Network Token serves to secure the Particle Chain through a PoS system.
  • Governance: Particle Network Token holders may play a role in the governance of the Particle Chain. They may use their token holdings to participate in decision-making processes regarding network upgrades, protocol changes, and other important matters.

Benefits to users

The Particle Network Token offers a number of benefits to users, including:

  • Convenience: Users can use a single token, the Particle Network Token, to execute transactions across different networks. This eliminates the need to have multiple tokens at hand, simplifying the transaction process. Having a single payment unit for cross-chain transactions significantly reduces the cognitive load of managing multiple tokens. This is an improvement upon the current model, where any cross-chain interaction necessitates at least 2 tokens to cover for gas on different chains, and routinely conducting said activities results in the need to hold as many tokens as the number of chains the user aims to interact with.
  • Security: The Particle Network Token is used to cover the fees associated with generating cryptographic proofs. These proofs enhance the security and trustworthiness of blockchain operations.
  • Aligning incentives: Perhaps more importantly, the Particle Network Token turns dApps and developers from paying customers (in Particle’s previous SaaS model) into growth partners who can use Particle’s products for free to jointly acquire end-users. This model reduces the burden on dApps and greatly accelerates the growth of the Particle Network.

In summary, besides its role in the zkEVM itself, the Particle Network token streamlines incentives and drives value accrual. It also acts to address the gas consumption issue during multi-chain execution, further enhancing execution efficiency and user experience. In cross-chain transactions, Particle tokens in any chain can be used to directly pay for gas fees on other chains.

Visual summary of the role and utilities of the Particle Network Token.

Visual summary of the role and utilities of the Particle Network Token.