The Complete guide to TENOM token
Tenom will be issued based on the Babble Blockchain. Tenom is the native token on Monet Hub (not ERC20). Tenom will be issued to the contributors of the token sale.
After the ICO end, additional tenom Tokens will be given to validators as a reward for the computational force, mining and securing work they perform within the Monet Hub. This is the process of emission typical for blockchains, being the tenom Token a native token.
The tokens will be transferred to the contributor’s addresses created right after the ICO. Tenom is a token, native to Monet ecosystem. Tenom has the following functionality:
- As a means of transacting on ad hoc blockchains and Monet Hub (including accessing of Smart Contracts, saving a log of transactions on Monet Hub, and connecting ad hoc blockchains to one another via Inter-Blockchain Communication);
- As a reward to validators for securing Monet Hub (both block reward and transaction fees are paid in tenom);
- As a stake to deposit as a collateral in order to participate in Monet Hub governance and to determine the weight of an individual validator decisions in the voting.
The token will have the full functionality with all elements described in the whitepaper right after the ICO, when Monet Hub becomes live and token becomes transferable.
Token holders who are among the top 100 validator candidates with the highest total stake (where total stake = self-bonded stake + delegators stake) become validators. Validators have the right to vote certain parameters of the network.
A validator weight in the governance voting is determined by the weight of their total token stake.
Since the token is not ERC20, but a native token on Monet Hub, tenom requires a unique wallet or integration of existing wallets.
Tenom will be used to reward validators on Monet Hub and to incentivize the community to contribute Monet Ecosystem development.
It will also be used to access services on Monet Hub. Additionally, tenom can also be used within specific apps that an ad hoc blockchain powers, where the app developers are free to use tenom as a payment method.
Tokens in MONET Ecosystem
Ad hoc blockchains do not issue their own tokens. Tenom is the only token accepted when an ad hoc blockchain needs interact with Monet Hub. Within a specific app that an ad hoc blockchain powers, the app developers are free to introduce their payment mechanisms relevant for the app or use Tenom as a payment method. Tenom will be used both as a block reward and as a transaction fee.
TENOM functionality
Does an app user need to have TENOM to initiate an ad hoc blockchain?
No. Users join in and out of an ad hoc blockchain and do not need Tenom to do so.
Does a user need to pay in TENOM to be able to save log of the actions on their device?
No. A user can save a log of their transactions on their devices without having to pay Tenom.
Does a user need to pay in TENOM to be able to access the log afterwards?
No. A user can access the log of transactions both on the Hub (if it was sent there) or on their own device without the need to pay Tenom.
Does a user need to pay in TENOM to be able to send the log of the actions to Monet Hub?
Yes. If a user wishes to send a log of transactions to the Hub, in a scenario where they need to prove on one chain that transactions have occurred on the other, the user needs to use Tenom to do so.
After using ad hoc blockchain, who pays for sending the information to Monet Hub?
A user who initiates the Inter-Blockchain Communication transaction or the one who needs to interact with Monet Hub pays for sending the information.
In most types of transactions, the person who sends information to the Hub does it for their own benefit, and those transactions, most often, relate to one person.
In a scenario where multiple people participated and there is a need to save the information on the Hub (chat, for example), a person who initiated the transaction bears the costs (Dropbox-line situation, where the one who is willing to share pays for the service).
After the termination of a blockchain, who has the access to the saved log of the information afterwards?
After the termination of a blockchain, whoever saved the information on their device have access to it. The logs of ad hoc blockchains are not automatically pushed to the Hub. But if the information was sent to the Hub by any of the participants, it becomes available for everyone (unless it’s encrypted).
Does a user need to pay in TENOM to connect to other babble blockchains?
Yes. Ad hoc blockchains can connect to each other via the Hub. In order to transfer data or value between the chains, users pay in Tenom.
How do the nodes of the Babble blockchain decide whether the log needs to be persisted and sent to the Hub?
The app developers decide what happens with the logs: whether the app design requires them to persist or to disappear. Each user can log transactions for themselves — it’s up to an individual decision.
Do app developers need to have TENOM to integrate Babble in the app?
No. Babble SDK is open source and available for use by any developer.
In most types of transactions, the person who sends information to the Hub does it for their own benefit, and those transactions, most often, relate to one person.
In a scenario where multiple people participated and there is a need to save the information on the Hub (chat, for example), a person who initiated the transaction bears the costs (Dropbox-line situation, where the one who is willing to share pays for the service).
Do app developers incur any fees associated with Babble transactions within the app?
Developers do not incur any costs related to transactions on Babble within their app.
Does one need to use TENOM to deploy and/or access a smart contract on Monet Hub?
Yes. In order to deploy and/or access a smart contract on the Hub, one need to pay transaction fees in Tenom.
Proof of Stake and Governance
What consensus does Monet Hub implement?
On top of the underlying Babble consensus, Monet Hub implements an additional layer to incentivize validators to act in the interests of the network. For that, the Hub uses DPoS whereby validators stake Tenom to be eligible to participate in the process of securing the network. Who is eligible to participate in consensus is determined by the amount of staking tokens they bond as collateral. Validators can stake Tenom directly or other token holders can delegate Tenom for validators to stake. Hence, top hundred by the total bonded stake (own plus the stake from delegators) will become validators. Validators are weighted by their total stake.
Is there minimum / maximum number of Hub validators?
The initial number of validators will start with 20 largest stakers and will gradually grow up to 100. During the test phase, the initial validators will also be the ones who have demonstrated their ability to maintain and secure the node, to participate in the governance, and to engage with the community.
Who can become a validator?
Anyone can declare an intention to become a validator and stake a portion of their Tenom tokens. If they can acquire enough support from others (delegators) to get into the top hundred by the bonded stake, they become a validator. There are technical requirements validators need to fulfil in order to be able to set up and maintain a node.
How many tokens must be staked to become validator? Will this number change with token price fluctuations?
There is no minimum. The top 100 validator candidates with the highest total stake (where total stake = self-bonded stake + delegators stake) are the validators. The number does not change with the Tenom price fluctuations.
What does “staking” mean?
“Validators ““deposit”” some portion of their Tenom and the delegated Tenom as a collateral in return for the right to secure Monet Hub. For as long as a validator is participating in the consensus, the tokens are locked.
Is there a punishment for misbehaving validators?
There is a variety of ways a validator can misbehave, from malicious behavior and forking to unavailability and failure to keep the node up to non-participation in governance. Depending on the severity of misbehavior, Tenom previously staked by a validator gets ““slashed””, i.e. taking away
For potential validators there is also a concept of being ‘voted-in’. Existing validators vote on Join Requests from new ‘would-be’ validators.
from a validator. Delegates, who delegated Tenom to a misbehaving validator, may lose tokens as the result, too. The ““slashed”” tokens go to MONET reserve that is further used to incentive the community and continuous development of the network.
What weight does a validator have in the consensus voting?
In other BTF-style proof of stake consensus mechanisms, validator weight, determined by the staked tokens, affects a chance of being a block proposer. Since Babble is a unique consensus system, there is no block proposer. Validators each create block individually and asynchronously. The consensus algorithm ensures that they create the same blocks, in the same order, with finality (once a block is created, it can be used right away). As the result, every validator has the same weight in consensus mechanism: one node — one vote. Note that this is different for the governance decisions.
Who decides on the evolution of the network? E.g. transformation of the Hub, governance, etc.: what type of governance is this?
In the early stages, community sentiment and MONET roadmap will guide the development of the network. Later down the road, when there is enough validators and the on-chain governance is implemented, validator will perform this function.
What weight does a validator have in the governance voting?
MONET will implement on-chain governance, where validators vote on the parameters of the network, transaction fees, slashing fees, as well as the usage of the funds in reserve, motivation of the developers and community members who contribute to the Monet ecosystem, and other. A validator weight in the governance voting is determined by the weight of their total token stake.
How do validators get incentive to keep the Hub running?
Validators get rewarded in newly emitted tokens (50% of the emission) and in transaction fees (100% of the fess minus ““the tax”” that goes to reserve).
Which types of transactions do validators get rewarded for?
Any transaction that take place on the Monet Hub.
How will token price fluctuations affect the transaction fees?
Token fluctuations do not affect transaction fees.
How is the remuneration divided between the validators?
The remuneration is divided proportionally to the amount of the total stake.
Do delegators get rewarded for delegating their stakes to other validators?
By delegating a stake to a validator, a delegator supports this validator in his or her votes and entrusts a validator to make decision on a delegator’s behalf. For that, after subtracting their commission and receiving their reward, a validator distributes a portion of validator remuneration to the delegates in proportion of the Tenom they staked.
How is validator commission determined?
Validators determine their own commission rate. It is in their interest to gather support from the delegators, and they use commission as one of the instruments.
How do validators spend the tokens, besides selling those on exchanges?
Validators can stake tokens they receive as rewards to increase their share in the reward. Validators can spend Tenom while using the Babble-powered applications (gas-like payments in Eth), accessing smart contracts on the Hub, and sending the log of transactions to the hub.
Token Emission
Is the token supply fixed or variable? Will there be an emission?
Tenom token supply is not fixed — additional gradual emission of Tenom tokens will incentive the network participants. We look to use the emission rate to incentive staking: if too little Tenom are staked, we increase emission making becoming a validator more attractive; if too many Tenom are staked, we decrease the emission making being a validator less attractive. At some point we expect the emission to stabilize around single digit numbers.
How is the annual emission used?
50% of the annual emission will be distributed to the validators as block rewards and the remaining 50% will go to the MONET reserve fund used to incentive and reward the developers and the community for active participation.
How are transactions fees structured? Do 100% go to validators or part of it go to Monet ecosystem/ Foundation?
There is ““tax”” on all the transaction fees — just like in the emission 50% of the transaction fee will to go to the reserve fund to incentive and reward the developers and the community for active participation.
What happens to tokens unsold in the token sale?
Unsold tokens will be reserved for partnerships, business development and motivation of community contributors.
