Token Utility
Validator Infrastructure
The UX chain is built on a network of validators that contribute Tendermint BFT consensus to the protocol. Tokens are bonded to validators that stake to provide Proof of Stake consensus to the network. Validators come from an open ecosystem of contributors and infrastructure providers. Tokens can also be delegated to validators by users to participate in the underlying consensus mechanism. This helps ensure the UX network remains decentralized.
Network Fees
Network fees will be earned in the form of UX tokens by validator infrastructure providers.
Similar to how ETH is used as a gas fee to pay for transactions on the Ethereum blockchain, UX is used as a gas fee to pay for transactions on the UX chain.
Validators earn block rewards in the form of UX similar to how transaction fees are processed in native blockchain protocols.
Protocol Governance
The native UX token is also a protocol governance token used to facilitate on-chain governance for the UX chain. The UX token, when staked, can be used to vote on protocol parameters and upgrades for improving functionality of the blockchain infrastructure. The UX token will also govern DeFi parameters of applications that sit on top, community grants, and future development.
