Tokenomics
Understanding the economic model behind BridgeNet's token ecosystem
BridgeNet Token (BRN)
The BridgeNet Token (BRN) is the native utility token of the BridgeNet ecosystem. It serves multiple functions within the protocol, including governance, staking, fee payments, and validator incentives.
BRN is designed with a deflationary mechanism that reduces the total supply over time, creating long-term value for token holders while ensuring the sustainability of the protocol.
Token Utility
- Bridge Fee Payments
Users can pay bridge fees in BRN tokens, receiving a discount compared to other payment methods.
- Validator Staking
Validators must stake BRN tokens as collateral to participate in the network.
- Governance
BRN holders can vote on protocol upgrades, parameter changes, and other governance decisions.
- Liquidity Mining
Users can earn BRN rewards by providing liquidity to supported token pairs.
Token Distribution
BRN tokens are distributed to align incentives among all stakeholders in the ecosystem
Initial Distribution
Token Metrics
Fixed supply with no additional minting
30% of total supply available at launch
Team and advisor tokens subject to vesting
Based on initial token price of $0.10
Tokenomics Mechanics
BridgeNet implements several tokenomic mechanisms to ensure the long-term sustainability of the protocol and create value for token holders.
Fee Burning Mechanism
A portion of all bridge transaction fees is used to buy back and burn BRN tokens, reducing the circulating supply over time. This deflationary mechanism creates upward pressure on the token price as usage of the bridge increases.
Staking Rewards
BRN holders can stake their tokens to earn a share of the protocol fees. Staking rewards are distributed proportionally to the amount staked and the staking duration, incentivizing long-term holding.
Bridge Fee Discounts
Users who pay bridge fees in BRN tokens receive a significant discount compared to paying in other currencies. This creates demand for the token and encourages its use within the ecosystem.
Token Governance
BRN token holders have the power to participate in the governance of the BridgeNet protocol through a decentralized governance system. Token holders can propose and vote on changes to the protocol, including fee structures, supported networks, and protocol upgrades.