SOMI is the native cryptocurrency of the Somnia network, a high-performance Layer 1 blockchain. The Somnia network is specifically designed to support real-time, large-scale applications such as gaming, social platforms, and metaverse environments.
Here's a breakdown of what the SOMI token is and its key functions:
1. Purpose of Somnia Network:
* Somnia was created to overcome the scalability limitations of existing blockchains.
* It is an Ethereum Virtual Machine (EVM)-compatible chain, meaning developers can easily migrate existing projects from Ethereum without major changes.
* The network is built for high throughput, with a reported ability to process over 1 million transactions per second (TPS) and achieve fast transaction finality.
2. Use Cases of the SOMI Token:
* Gas Fees: SOMI is the utility token used to pay for all transaction fees on the network, including transfers, smart contract executions, and NFT minting.
* Staking: Validators are required to stake a significant amount of SOMI to operate a node and secure the network. Token holders can delegate their SOMI to validators to earn rewards.
* Governance: In the future, SOMI holders will be able to participate in the decentralized governance of the network by voting on proposals that will shape its development.
* Fueling dApps: The token powers various applications built on the Somnia blockchain, from on-chain games to decentralized social media and DeFi platforms.
3. Tokenomics:
* Total Supply: The total supply of SOMI is capped at 1 billion tokens. This fixed supply is intended to prevent long-term inflation.
* Deflationary Mechanism: A significant portion of the transaction fees collected on the network (50%) are burned, which permanently removes them from circulation and creates a deflationary effect.
* Distribution: A portion of the total supply is allocated for community growth, validator rewards, and airdrops to early supporters and users.
In summary, the SOMI token is the economic backbone of the Somnia blockchain.
