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Tokenomics Overview

The OVER token is the native cryptocurrency of OverProtocol, serving as the backbone of its economic ecosystem. Designed for sustainability, inclusivity, and growth, the tokenomics of OverProtocol ensures that the network remains secure, decentralized, and accessible.

Core Roles of OVER​

The OVER token is designed to support multiple key functions within the OverProtocol ecosystem:

  1. Network Security

    • Validators stake OVER to participate in the Proof of Stake (PoS) consensus mechanism.
    • Staking aligns validators’ incentives with the network’s security and reliability.

  2. Transaction Fees

    • OVER is used to pay for transaction and smart contract execution fees.
    • Fees collected are partially allocated to the DAO Treasury, contributing to long-term sustainability.

  3. Incentives and Rewards

    • Validators and active participants are rewarded in OVER for their contributions to network security and scalability.
    • Reward mechanisms encourage consistent participation and maintain a decentralized validator set.

OverProtocol’s tokenomics is designed to create a self-sustaining, inclusive, and scalable blockchain economy. By aligning economic incentives with network goals, the OVER token plays a critical role in fostering innovation, security, and global adoption.

Why Tokenomics Matters​

The tokenomics of OverProtocol ensures:

  • Alignment of Incentives: Economic rewards and penalties are designed to encourage responsible participation.
  • Sustainability: OVER's role in staking and transaction fees supports long-term network health.
  • Security: Staking mechanisms protect the network from malicious activity by ensuring validators have a vested interest in the system.

For more details on staking and validator rewards, refer to the Validator Requirements Section →.