Frequently Asked Questions about the WIT token
Here we cover some frequently asked questions regarding the WIT token.
If you can’t find an answer to your question here, feel free to reach out to the community on Telegram or Discord.
Contents:
1. What are WIT tokens and what are they used for?
2. How can I mine or earn WIT tokens
3. Where can I buy or trade WIT tokens?
4. Where can I store my WIT tokens?
1. What are WIT tokens and what are they used for?
WIT tokens are native to the Witnet blockchain, and fuel and secure the Witnet network.
They are used as a tool to incentivize Witnet’s distributed network of mining nodes to retrieve and report web data (e.g. sports results, stock prices, weather forecasts, information from other blockchains, etc).
They also function as a form of collateral on the network, to ensure that node operators are not susceptible to bribery and abide by the rules of the protocol.
Each WIT token is made up of 1,000,000,000 NanoWITs — this makes it possible to send or use fractions of a WIT token when utilizing the network.
2. How can I mine or earn WIT tokens
As Witnet is a permissionless network, anyone can set up and run a node (or multiple nodes) on the network, including you!
Nodes can earn WIT tokens through mining. Initially, each block (created every 45 seconds) has a reward of 250 WIT, distributed to the node that successfully mines it. This reward will automatically reduce by half (known as “halvening”) every few years.
Nodes also earn WIT by resolving data requests on the network; data requesters that wish to use the network must reward nodes that resolve the request with a small WIT fee.
If you have any questions on how to get started, please reach out on Telegram or Discord. You can also check out the Node Operator FAQs.
3. Where can I buy or trade WIT tokens?
WIT Mainnet tokens are not designed to be a store of value; they are NOT lucrative or speculative assets, and should not be treated as such.
Simply put, WIT tokens are a tool for smart contract developers to use within the Witnet Network to deploy data requests, and are designed to be used solely for their intended functionality within the Witnet Network.
For more information on how you can use your WIT tokens within the network, please see this blog post.
The Witnet Foundation does not know if the tokens will ever be listed on exchanges or any other secondary marketplace. It will not pursue any such listings and will not facilitate the existence of any such market.
4. Where can I store my WIT tokens?
Sheikah, Witnet’s Desktop Client and Wallet Application can be used to store your WIT tokens.
Simply download the app, create a wallet, and send your tokens to your public address (starting WIT…).
Important: Make sure to keep your wallet’s 12-word seed phrase safe and secure!
If you’d like to send your node’s minted WIT tokens automatically to a designated wallet, edit the following fields in your node’s witnet.toml file:
mint_external_address to specify the external wallet address that you’d like the tokens minted to.
mint_external_percentage to specify the percentage of your node’s minted WIT token that you’d like designated to your external wallet address.
