The Token Economics of ParaState

ParaState, a multi-chain smart contract platform bridging the application and developer ecosystem between Substrate-based blockchains like Polkadot, and Ethereum, is pleased to present its tokenomics to the entire community that loves blockchain technology and has enthusiastically awaited the development of scalable solutions for Ethereum.

ParaState strongly believes in the implementation of its EWASM technology integrated with other blockchain projects that wish to improve the execution times of their smart contracts thanks to the technical scalability capabilities inherent to the Polkadot ecosystem.

To achieve this, ParaState focuses on using its internal token STATE as fuel for its internal economy, applying a model of the token economy configured in a DAO to allow all actors to earn more tokens for positively contributing to the development and expansion of the ecosystem.

STATE Token

ParaState is a decentralized autonomous organization (DAO) funded by license fees (as a percentage of gas fees) generated by transactions on other networks using ParaState technology.

ParaState will launch its STATE token on the Ethereum Network, under the ERC-20 standard with a total supply of 1B tokens.

Any blockchain project that is interested in taking advantage of the technical advantages of ParaState EWASM will be charged licensing fees in the native currencies of these blockchains. Therefore, the intrinsic value of STATE is backed by a basket of native cryptocurrencies from these blockchain projects.

STATE will be used to:

• Reward “Plato” node validators to maintain an experimental showcase for advanced technology features.
• Reward dApps deployed on ParaState’s infrastructure.
• Reward token holders who stake to participate in governance.
• Includes voting on whether to kick-off a permanent L1, a parachain or a L2 based on ParaState’s technical infra.
• Bestow participation rights in the governance of the ParaState developers’ DAO treasury.

STATE: A DAO token

The ParaState Foundation will manage the developer treasury and execute the decisions of the DAO at the very beginning. Ultimately, all STATE Token holders as part of the DAO will oversee and exercise decentralized governance.

ParaState intends to initially rely on off-chain voting protocols such as Snapshot to account for votes, and will seek to develop more direct participation.

Token holders wishing to participate in the governance of the EWASM’s development may have the option in the future of staking their tokens in exchange for a proportional vote on the development of the technology.

The collection of license fees for the EWASM runtime/pallet will be distributed 90% to the DAO treasury, while the remainder (10%) will go to the long-term development reserve.

Video Tutorial

Tokenomics

The supply of STATE tokens is fixed and a total of 1,000,000,000 STATE tokens have been stipulated to be issued in circulation within the ecosystem.

Check more details in the Tokenomics Paper

About ParaState

Known as Ethereum on steroids, ParaState is a multi-chain smart contract platform bridging the application and developer ecosystem between Polkadot, Substrate and Ethereum, as well as other chains wanting to provide Ethereum compatibility. While supporting the EVM pallet to provide seamless compatibility with all existing Ethereum applications, ParaState also provides developers with a next-gen smart contract implementation environment, Ethereum-flavored WebAssembly. These two infrastructures are ensured to talk to each other and share the same account system on ParaState.

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