Analyze the value-added mechanism and market potential of Smart Layer ecological token SLN

Smart Layer ecosystem token SLN has been officially released. Smart Layer builds a new infrastructure layer for token usage and liquidity. The SLN token is designed to enable value capture across the entire ecosystem, which includes the Smart Layer Network, Smart Layer Launchpad, and all related tools and technologies. Its maximum supply is set at 100 million tokens, and the specific token economic mechanism is detailed in the relevant information. Each token project represents potential demand for SLN. SLN is positioned at the forefront of multiple rapidly growing areas, including gaming, DePIN, decentralized finance (DeFi), and more.

This article aims to answer four key questions:

1. What is the functional purpose of SLN?

2. How to optimize the circulating supply of SLN?

3. What drives demand within the ecosystem?

4. In the context of the rapid development of the token economy, what is the bullish thesis for SLN?

Next, let’s take a deeper look.

What is the function of SLN?

SLN plays three basic functional roles in the entire ecosystem:

Staking

Projects and users can obtain SLN rewards, handling fees, and enjoy discounts through staking, including Discounts on usage and sales prices, as well as opportunities to participate in governance voting and qualify for Launchpad projects.

Payment

Projects and users can use SLN to pay for the use of tools, network or Launchpad, rental services, etc.

Gas Fees and Transaction Fees

All transaction fees incurred on the tool, Launchpad, and network are charged in SLN, similar to how Ethereum uses gas fees.

How to optimize the circulating supply of SLN?

The Smart Layer ecosystem uses these functions to control the circulating supply and establish a model designed to promote price health and ecosystem growth.

What will drive demand across the ecosystem?

The demand mainly comes from the application of the four key components of the Smart Layer ecosystem, as well as the participation and benefit from pledgers, project parties, developers and currency holders in various ways. These interactions will generate fees in the form of SLN for stakers, project parties, and Smart Layer itself.

These four major components include:

1. ERC-5169 standard tool

2. TokenScript framework tool

3. Smart Layer Launchpad

4. Smart Layer Network

No matter which part or tool of Smart Layer is used, users need to pay SLN, pledge SLN or incur SLN fees. SLN can be used in these components in a variety of ways:

- Stake SLN to provision service nodes to earn inflation rewards and fees

- Stake SLN to earn from the Launchpad project Earnings, qualify for third-party airdrops, promotions and other benefits

- Stake SLN to participate in governance voting

- Delegate SLN to earn revenue from node operators

- Use SLN to pay service fees in the market and projects

- Project parties pay SLN to use key components or tools of the Smart Layer ecosystem

- Use SLN to pay transaction gas fees

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