As most in the Edge community will know, the tokenomics of the platform have been in review for some time, driven by the high development pace around the network’s own blockchain, and the evolution of that portion of the platform into a store of value for edge computing capacity, enabling the fast and free attribution of value for resource.
We’re moving quickly towards the release of the platform and the issuance and distribution of the network’s own coin, $XE. In anticipation of this I want to take a moment to outline the tokenomics of the platform.
There are two methods of value exchange in the Edge Network, $XE, which is internal to the network, and $EDGE, which is on the public Ethereum network.
$XE is a layer 2 solution designed for fast transactions mapped to resource usage. It is bridged into the Ethereum network on a 1:1 basis with the $EDGE token.
Transactions within the Edge Network are free for staking wallets. Non-staking wallets are charged a small fee to help to maintain the security of the chain. Bridging $XE in/out of the network to $EDGE in the Ethereum network carries a variable gas fee.
For transactions out of Edge Network, this fee is taken in $XE. Individuals can choose their target gas fees and the bridge will automatically transmit their transaction to meet the target set. This acts to help to keep transaction fees as low as possible.
For transactions into the Edge Network, the gas fee is taken in $ETH.
As a network native coin, $XE does not count towards the circulating supply of $EDGE. Therefore service usage, staking, governance and fees all act to reduce the circulating supply of $EDGE by locking value in the network itself.
Edge is a community driven platform – contributors to the network are the network in a very real sense. As such, any future changes relating to network tokenomics will be run through project governance.
Network Funds
There are three main funds controlled by the network.
The Dev Fund holds $XE assigned to support the day-to-day development of the network. The Growth Fund holds $XE assigned to support the marketing and growth in uptake of the Edge Network. The Staking Contract holds $XE locked in the network as governance and node stakes.
The Growth Fund is controlled through project governance.
$EDGE
$EDGE is a tradable utility token on the Ethereum network (ERC-20). It is the entry point to the Edge ecosystem and can be used for the purchasing of Edge services.
Knowledge
Last Updated:
April 2021