The mechanics of how the token works in the Oort ecosystem
Oort utilizes the utility token native to the Oort ecosystem. The utility token is used for service payment, staking, governance. The token allocation is shown below.
Oort Token Allocation
Node providers, traditionally named as “miners”, refer to the computing device owners who contribute their computing and storage resources to the Oort Network.
Token holders refer to people who process Oort’s utility tokens.
Users can always pay fiat currency (via credit card) for different services in the Oort ecosystem. However, a discount is usually given to the users who use Oort utility tokens for service payments.
Oort offers two ways for token holders to stake tokens: Stake tokens with staking pools. One can delegate tokens to node providers via Oort bonding pools. Node providers will use staked tokens as mining collateral. As a result, you will receive a share of mining rewards from the provider. Become a node provider. Stake tokens as mining collateral.
Governance is one of the primary functions of the Oort ecosystem. Users submit proposals and vote on topics like network parameters, slashing mechanisms, and service fees.
A proposal must be submitted with a certain amount of deposit, which is fully refundable once the proposal passes. If the proposal fails to pass, deposits will be distributed to the mining rewards pool for node providers.
The Oort Foundation will use up to 30% profit to regularly buy back and burn its utility tokens to reduce the total token supply and thus gradually and continuously increase token value.
- Token burning frequency: every three month
- Token burning cap: 40% of the total token supply