Tokenomics

The DeBan token (DEBAN) is the native utility token that powers the DeBan ecosystem, enabling seamless interaction and incentivization across the network. Designed to fuel a decentralized bandwidth-sharing economy, DEBAN serves as the backbone of the platform, connecting contributors, validators, and users through a transparent and rewarding system.

DEBAN tokens are integral to the network's operation, ensuring fair compensation for participants while supporting the ecosystem's scalability and security.


How DEBAN Tokens Are Used

  1. Earning Rewards

    • Node operators who contribute their unused bandwidth to the network earn DEBAN tokens as compensation. The reward amount is based on factors such as the volume of traffic relayed, geographical demand, and the node's reputation score.

    • Routers and Validators are also rewarded in DEBAN tokens for their roles in securing and maintaining the network.

  2. Payment for Bandwidth

    • Businesses or individuals who need access to bandwidth for data scraping, content delivery, or other purposes can use DEBAN tokens to pay for services within the network.

  3. Staking for Validators

    • Validators can stake DEBAN tokens to secure their position within the network. Staking ensures they have a vested interest in maintaining the network's integrity and efficiency.

  4. Incentivizing Network Growth

    • DEBAN tokens are used to incentivize early adopters and contributors, encouraging more users to join the network and expand its coverage.

  5. Governance

    • Token holders can participate in governance decisions, such as proposing and voting on network upgrades, changes to reward structures, or other critical developments. This ensures the ecosystem remains community-driven and aligned with user needs.


DEBAN Tokenomics

Token Supply

  • Total Supply: 1,000,000,000 DEBAN (fixed supply; no inflation)

  • Token Type: ERC-20 (initially deployed on Ethereum, with multi-chain support planned)


Token Allocation

Category

Allocation

Details

Node Rewards

40% (400,000,000)

Reserved for rewarding node operators and incentivizing bandwidth contributions.

Ecosystem Growth

20% (200,000,000)

Used for partnerships, grants, ecosystem development, and incentivizing adoption.

Staking & Validators

15% (150,000,000)

Allocated to reward Validators for securing the network and staking rewards for token holders.

Team & Advisors

10% (100,000,000)

Reserved for the core team and advisors; vested over 4 years to align with long-term goals.

Pre-Sale Tokens

5% (50,000,000)

Allocated for pre-sale offerings to early supporters, with strategic vesting schedules.

Token Sale (Public/Private)

5% (50,000,000)

Allocated for public and private token sales to fund network development and expansion.

Treasury & Reserve

5% (50,000,000)

Held for unforeseen needs, future development, or strategic opportunities.


Token Utility

  1. Node Operator Rewards

    • DEBAN tokens are distributed to node operators as rewards for contributing bandwidth to the network. Rewards are calculated based on factors such as bandwidth volume, geographical demand, and node reputation scores.

  2. Payment for Bandwidth Services

    • Businesses and organizations use DEBAN tokens to pay for bandwidth and data services within the network, creating a demand-driven utility for the token.

  3. Staking for Validators

    • Validators are required to stake DEBAN tokens to secure their position and participate in the validation process. In return, they earn staking rewards for validating and batching network transactions.

  4. Governance

    • DEBAN token holders can participate in governance decisions, such as proposing and voting on protocol upgrades, reward structures, and network policies. This ensures the ecosystem remains community-driven.

  5. Incentives for Ecosystem Growth

    • DEBAN tokens are used to incentivize early adopters, partnerships, and contributors to expand the network's reach and utility.


Emission Schedule

The token distribution is designed to balance rewards for early participants with long-term sustainability. Node rewards and staking incentives are distributed progressively over a 10-year period, tapering as the network matures.

Year

Percentage of Rewards Distributed

1-3

50% of Node/Staking Rewards

4-6

30% of Node/Staking Rewards

7-10

20% of Node/Staking Rewards

This declining emission model ensures early contributors are adequately rewarded while preserving token value over time.


Pre-Sale Details

  • Token Allocation: 5% of the total supply (50,000,000 DEBAN)

  • Price: $0.015 per DEBAN (discounted rate for early supporters)

  • Vesting Schedule:

    • 10% unlocked at token generation event (TGE).

    • Remaining 90% released linearly over 12 months.

The pre-sale aims to onboard early supporters and contributors who believe in the long-term vision of the DeBan project.


Token Sale Details

  • Private Sale: 5% of the total supply

    • Price: $0.02 per DEBAN

    • Vesting: 12-month lockup, followed by 12-month linear release

  • Public Sale: Included in the above allocation

    • Price: $0.05 per DEBAN

    • Vesting: No lockup


Deflationary Mechanisms

To maintain token value and reduce circulating supply over time, DEBAN incorporates deflationary mechanisms:

  1. Burn Mechanism:

    • A portion of tokens used for bandwidth payments is periodically burned, reducing the total supply.

  2. Staking Lockups:

    • Staked tokens are temporarily removed from circulation, limiting supply and encouraging long-term holding.

Last updated