The FIO Protocol will be powered by a utility token (FIO). The FIO Token will be used to pay for transactions processed through the FIO Chain. To hold a token or a FIO Address/Domain, a user only needs a private/public key pair, and all transfers can be achieved using a FIO public key. This allows support of FIO Tokens without any special functionality.
FIO Tokens support the SLIP-44 (FIO index at position 235) standard. When a user chooses to restore seed phrases from one wallet to another, the FIO Tokens as well as FIO Addresses and Domains will be restored.
- Maximum Total Supply: 1,000,000,000 FIO
- Each token is divisible into 1,000,000,000 Smallest Units of FIO (SUF)
- No inflation beyond the Maximum Total Supply
Demand for FIO Tokens will arise from:
- Users needing tokens for utility of the FIO Protocol (e.g. registering FIO Addresses/Domains as well as other transaction fees)
- Individuals and entities desiring tokens for the purposes of voting towards block production
- The possibility that some wallets or exchanges my choose to compensate their users for holding FIO tokens which they can then vote towards block production
- Future enhancements to the FIO Protocol that are envisioned to create additional utility fees to be paid in FIO tokens.
The market-based fees element of the FIO Protocol will ensure that the actual token charges to users continually adjust based on roughly the current human perceived value of a FIO Token. So, for example, as the FIO Token value goes up, the charge for a specific utility like registering a FIO Address will go down in absolute number of FIO Tokens being charged.
Fees collected for FIO Address/Domain registration are not immediately distributed, but rather locked and distributed evenly every day over a period of one year. This ensures Block Producers processing bundled transactions are properly compensated.