Zenon has a dual token economy: $ZNN and $QSR. Can you explain what $ZNN is used for and how is it different than $QSR? Why do we need two tokens?
1 Answers
Zenon operates with a dual-token economy featuring ZNN and QSR, each with distinct roles:
1. Zenon (ZNN): The primary currency and governance token of the Zenon network. It is used as collateral in the consensus infrastructure to secure transaction validation and recording. ZNN holders can participate in network governance decisions.
2. Quasar (QSR): Powers network operations, enabling transaction processing via "plasma fusion" and is also used to set up network infrastructure like Sentinels and Pillars.
Why both tokens play an important role
Unlike traditional Proof-of-Stake (PoS) systems where staking can infinitely increase validator count, Zenon's approach requires a significant financial commitment through QSR burning. This design effectively solves the "rich-get-richer" problem as it aims to create a more robust, decentralized, and committed validator set.
Users can only obtain QSR by locking ZNN tokens or through providing liquidity to the network. This mechanism ensures that QSR remains tied to active participation and investment in the Network of Momentum.
By utilizing this dual-token economy, Zenon aims to create a more balanced, secure, and decentralized network that incentivizes long-term commitment from its participants.
