Table of contents
What is Staking
Treasurenet blockchain network is kept online by independent computing nodes, also called Validator nodes, that work together to securely record network events. In return, the network rewards currency in the form of $UNIT tokens to these nodes.
To keep every node in check, nodes must deposit, or stake, $UNIT tokens that are to be penalized if any node acts against the rules of the network, for example to keep record of RWA productivity. Every node is vigilant of each other, and maintains the Treasurenet distributed ledger.
To further encourage decentralized participation, Validator nodes must accept deposits, or stake, from any token holder. Therefore, users may participate in securing the network and earning rewards without needing to operate hardware.
What is Bonus Stake
Treasurenet introduces the concept of Bonus Stake based on real-world asset production. Not only can users stake $UNIT tokens into Validator nodes, users can bid $TAT tokens for a chance at bonus stake rewards.
While $UNIT tokens that are staked are never lost, $TAT tokens that are casted for bids will be burned. This is the cost for unlocking maximum $UNIT token rewards.
Why is there Bonus Stake
$UNIT is an asset-based currency where its total supply is determined by $TAT, generated from real-world assets. Therefore, generating such assets should be rewarded appropriately.
Rewarded appropriately is the key. To be a sound currency, simply minting a token for asset owners is not wise. Typically, asset-backed tokens are financial securities that mainly benefit the issuers.
In the case of existing asset-backed tokens, the underlying assets’ data is sourced from centralized storage records. If the claimed gold or cash is not actually present, the token’s value becomes worthless, as it relies solely on commitment or assurance by a centralized authority. This cannot be the base for a sound currency.
Also, in the context of asset-backed tokens, they are typically issued on top of existing networks through smart contracts. For instance, an existing gold token is issued on the Ethereum blockchain. However, in existing networks like Bitcoin or Ethereum, the rewards for participating in the blockchain (such as BTC or ETH) are not directly influenced by real-world assets.
There is no inherent connection between the native currency of the network and the asset-backed token built on top of it. As a result, real-world assets do not exert any influence on the network rewards.
Instead, Treasurenet first uses $TAT to measure all assets, then uses $TAT to determine how much asset-based currency, $UNIT, that should be minted.
Finally, Treasurenet uses a proof-of-stake process to appropriately reward $UNIT tokens to participants that help secure the network, or contributed real-assets to the network, or even both.