DCPC Usage
Last updated
Last updated
DCPC is 100% pre-issued, with a total supply of 10 billion tokens that have been or will be distributed according to the Token Distribution Plan described in the whitepaper. DCPC will be used as a utility token for various transactions on the DotCube Protocol as described in the whitepaper, and will be used to pay transaction fees, currency conversion fees, etc. that occur within the platform. It is also used to create and execute smart contracts and to pay nodes for processing tasks requested by network users.
As mentioned above, in order for a network to form a stable token economy, it must have a minimum economic size, i.e., a certain number of participants. While the DotCube Protocol can attract a wide range of users and secure potential DCPC network participants, DCPC's own rewards for participants can also be an important incentive for participation. In order to achieve the minimum economic scale and transaction scale, the DCPC platform burns a portion of the transaction fees generated by the DCPC platform, such as token transaction and currency exchange fees, and withdraws 50% of the burned portion from the Ecosystem Reserve and deposits it into the Ecosystem Growth Fund.
A portion of the DCPC paid as transaction fees is burned by DCPC's supply and demand control mechanism, and 50% of the burned amount is issued to the DCPC network. In the long run, as the number of users and transaction volume on the DCPC network increases, the amount of DCPC in circulation will decrease, which means that there may be a shortage of DCPC required to use the service, which may cause adverse effects. To prevent this, a certain amount of DCPC from the Ecosystem Growth Fund can be regularly issued to the DCPC network. However, the total amount of DCPC burned and the ratio of the amount of additional DCPC issued to the network from the Ecosystem Growth Fund will be determined later by the Foundation as a policy for each period.
