Economics is as important as the technical implementation of the protocol. It is critical to have sound economics for the sustainability of the protocol on its own. At the end of the day, every actor of the network who is bringing value to the protocol needs to be happy to continue their contributions and participation.
We are designing the economics in such a way that it should ensure that the users using the service pay an acceptable fee and the actors of the network providing service get fairly incentivized for active participation and the value they add to the network. Our initial implementation takes care of the basic incentive mechanism of economics using the blockchain native currency (ETH) without any native token. The main intention behind this is to simplify the initial economics and study the actors and the incentive structure in our testnet ecosystem before stress testing the economics.
Safe maintenance fee:
The safe maintenance fee is the one-time fee that is charged for each safe on the platform. The fee can be paid by either the safe creator or the beneficiary anytime between the safe creation and safe claim phase. The fee guarantees the durability, safety, and convenient recovery of the safes. The safe maintenance fee is initially set by us but can be altered through the governance process.
The Safiens (guardians) are solely responsible for protecting and recovering the safes during the claim phase. Their active participation is critical for the functioning of the network and thus they need to be incentivized for their activities. We intend to incentivize the Safiens in two ways - through the safe maintenance fee (ETH) that can be collected while after recovering each safe and a reward that is earned for the longevity of network participation.
Safient Protocol Tokens:
Safient Protocol Tokens are the native tokens that will have several roles in the protocol. These tokens primarily act as an incentive layer and indirectly contribute to the functioning of the protocol rather than creating the value directly. The tokens will allow to accelerate and sustain the network
Tokens and reward system: