Utility

Overview

Towns Token serve multiple purposes that include delegation to Node Operators, Space address delegation, and governance participation.

Node Operator Delegation: Towns Tokens are delegated to Node Operators, who are essential for the network’s operation. To be approved by the Towns Lodge and operate, Node Operators must secure a minimum delegation amount, ensuring they have sufficient stake in the network’s success and security.
Delegation Period: Once delegated, Towns Tokens become non-transferable for a 30-day cooling-off period. This lock-in period starts from the moment the unstake() function is called. This restriction is in place to maintain network stability, allowing adequate time for nodes to rebalance their stream data following a reduction in their delegated tokens below the minimum requirement, leading to their potential exit from the network.

Direct and Space Delegations: Delegation can be directed either to the Node Operator’s address or to any valid Space address within the network. Spaces, in turn, can redirect their delegated tokens to any specific Node, providing flexibility in delegation strategies.
Voting Power and Delegation: Delegating tokens to a Space allows the Space to retain its voting power in governance decisions while still contributing to a Node Operator’s required delegation. Conversely, tokens directly delegated to a Node Operator not only count towards their operational stake but also transfer governance power to them.
Enhanced Features: Spaces with enough delegation will unlock enhanced features at the protocol level. Spaces can get additional storage retention of their data or set custom pricing modules that can allow members to join for free by having enough tokens delegated to them.

Voting with Towns Tokens: In addition to their role in delegation and network operation, Towns Tokens are instrumental in the governance of Towns Lodge. Token holders can participate in decision-making processes, influencing the direction and policies of the Towns Lodge.
Balancing Delegation and Governance: The dual utility of Towns Tokens in both delegation and governance allows for a balanced ecosystem where token holders can support network operations while actively engaging in its democratic processes.