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Overview

The Towns Token (TOWNS) serves multiple roles in the Towns ecosystem. Nodes are required to have a minimum amount of tokens delegated in order to operate in the network. TOWNS token is used to compensate Nodes via inflationary rewards. Spaces earn additional functionality when they reach different levels of token delegation. As a governance token, it empowers its holders to influence the direction and policies of the ecosystem. TOWNS is also used to incentivize node operators, developers, and users while fostering long-term growth and engagement of the Towns protocol.

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Utility of TOWNS

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Use by Nodes

TOWNS tokens are essential for nodes within the Towns network. To operate, nodes must have a minimum requirement of TOWNS tokens delegated to them. This requirement ensures a committed and stable node operation within the network. Moreover, nodes with a higher amount of staked tokens gain priority in the operational queue, reflecting the finite capacity of active nodes at any given moment.
  • This requirement is met by a combination of tokens delegated directly to the node as well as Spaces that point their delegated tokens to that node.

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Use by Spaces

Spaces within the Towns ecosystem can leverage TOWNS tokens for enhanced functionalities and governance. With delegated tokens, Spaces can implement custom entitlement logic on other EVM chains besides Base. Higher amounts of delegated tokens allows for custom pricing modules without Towns Lodge approval, such as allowing members access at no cost.

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Token Delegation

  • User to Space/Node Delegation: TOWNS holders can delegate their tokens to either a Space or a Node, a mechanism that underpins the governance model of the Towns ecosystem. This delegated stake allows users to contribute to the protocol’s governance, emphasizing the role of Space operators as key governance participants.
    • Delegated tokens are not transferable. When tokens are undelegated, a 60-day countdown is initiated before the tokens are transferable again. This period is required to allow time to rebalance streams of a given node if delegation is removed below the minimum requirement.
  • Spaces Pointing to Nodes: Spaces can point their tokens to nodes, aiding them in meeting the minimum operational requirements. This symbiotic relationship allows Spaces to partake in the inflationary rewards earned by the Node, without transferring governance rights, which remain with the Space.
    • It is important to note that by pointing to a given node, a Space is signifying good nodes to operate in the ecosystem but has no additional relationship where the Space would be provided better service, as all active Nodes in the system perform equal work.

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Use for Governance

Governance within the Towns ecosystem is exclusively driven by delegated tokens. This model ensures that only stakeholders actively participating through delegation have a say in governance decisions, promoting a more engaged and responsible governance community.

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Token Information

  • Symbol/Network: TOWNS is an ERC20 token on the Base and Ethereum Mainnet.
  • Supply: The initial supply is set at 10 billion tokens, with a designed inflationary model.
  • Inflation: TOWNS token is programmed with initial 8% inflation which decreases linearly over 20 years until it hits a final inflation rate of 2%.
  • Distribution: The distribution of TOWNS tokens is as follows: approximately 35% to the team and investors, 5% to HNT Labs, and the remaining 60% allocated to the association. The initial allocations to the team and investors are subject to a one-year lock-up period, followed by a two-year linear vesting schedule.
  • Contract Addresses: The TOWNS token is deployed on: Base: 0x00000000A22C618fd6b4D7E9A335C4B96B189a38 Ethereum: 0x000000Fa00b200406de700041CFc6b19BbFB4d13

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Association Initiatives

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Airdrops

The Towns ecosystem will conduct multiple airdrops targeting various stakeholders to stimulate engagement and reward early adopters. The first airdrop will focus on Space Owners with paying members, paying members, other Space Owners and members, in that order.

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Community Rewards

A biweekly distribution model is planned for Community Rewards, allocating a fixed amount of tokens to Spaces with significant delegated tokens relative to each other. These rewards are designed to encourage token delegation and active participation in governance and introduce a team competition component to drive engagement. These incentive rewards will either be distributed to the Space or back to the members directly pro rata.

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Grants Programs

The association will establish committees to oversee the grant programs, aimed at supporting the development of the Towns Protocol and its applications. These grants are intended to catalyze innovation and growth within the Towns ecosystem. The initial grants will focus on client developers building on the Towns protocol and additional Towns stream and storage implementations for the protocol itself.