CROSS Token Utilites
Unlocking the full potential of DeFi Chain Abstraction through staking, governance, and strategic rewards, while driving sustainable growth and user engagement.
zkCross Network Token Model
Empowering Value and Governance Across the zkCross Ecosystem
The zkCross Network operates on a sophisticated three-token economy designed to facilitate and optimise user interaction, governance, and value accrual within its DeFi chain abstraction infrastructure. The tokens—CROSS, CROSS Power (CP), and vCROSS—each play a unique role in ensuring the efficiency, security, and scalability of the zkCross ecosystem.
1. CROSS Token (CROSS)
Overview
Name: Cross Ticker: CROSS Fixed Max Supply: 2,100,000,000 Token Type: ERC-20
The CROSS Token is the cornerstone of the zkCross Network, serving as the primary utility token within the ecosystem. It is designed to accrue value over time through strategic mechanisms such as staking, rewards, and token buybacks.
Utilities
Staking Rewards
Mechanism: Users can stake their CROSS tokens to earn a share of the fees generated on the zkCross Network. These rewards are distributed in the form of additional CROSS tokens.
APY: The Annual Percentage Yield (APY) for staking is variable and is determined by the amount of fees collected by the network. Staking CROSS also rewards users with CROSS Power tokens as a multiplier.
Token Buyback Program
Mechanism: A portion of the fees generated across the platform is allocated for monthly buybacks of CROSS tokens from the open market. These tokens are then transferred to the treasury, creating sustained buying pressure that directly correlates with platform usage.
Value Accrual: As the network expands and more users engage with the ecosystem, the buyback program will increasingly support the token’s price.
Governance Participation
vCROSS Token: Stakers of CROSS tokens receive vCROSS tokens on a 1:1 basis. These non-transferable tokens enable users to participate in governance by voting on proposals and shaping the future of the zkCross Network without unstaking their CROSS tokens.
Grant Program
Mechanism: CROSS Tokens are used to incentivize and support projects that build on or integrate with the zkCross Network, driving ecosystem growth and adoption.
Partner Airdrops
Mechanism: CROSS stakers can exchange their earned CROSS Power tokens for partner airdrops through dedicated swap pools, providing additional incentives for long-term holding and staking.
2. CROSS Power (CP) Token
Overview
Name: CROSS Power Ticker: CP Supply: Unlimited Token Type: ERC-20 (Mint/Burn)
CROSS Power (CP) serves as the rewards token within the zkCross Network, designed to incentivize user interactions and platform engagement. Unlike CROSS, the supply of CP is not capped, allowing for its use in various platform activities without diluting the value of the primary token.
CROSS Power Token Multiplier
The CROSS Power tokens are minted based on the “X” multiplier. Each instance / interaction on the zkCross Network will result in the generation or burning of the CROSS Power token. Users can earn CROSS Power by interacting on the platform or by directly buying it on the open market. CROSS Power (CP) will be minted based on the X Multiplier for all interactions / instances on the zkCross Network. Listed below are the instances / interactions which will mint CROSS Power tokens with an X multiplier.
How are CROSS Power (CP) Minted?
Platform Use / Interaction (Transactions based)
On-Chain Swap
Cross-Chain Swap
Bridging
Staking CROSS
Bridge Liquidity Staking
DEX Pool Staking
Through the telegram Clicker Game
Utilities
Staking Rewards
Multiplier Logic: When users stake CROSS tokens, they earn CROSS tokens as rewards along with CP tokens, which are minted based on a predetermined multiplier that varies depending on the specific interaction or staking activity.
Minting Discount NFTs
Mechanism: CP tokens can be used to mint exclusive Discount NFTs, which provide users with varying levels of discounts on platform fees. These NFTs come in five tiers—Bronze Voyager, Silver Explorer, Gold Conqueror, Platinum Pioneer, and Diamond Navigator—each offering a different level of benefits and lasting for one year before expiring.
Merchandise and Event Access
Mechanism: Users can spend CP tokens to purchase zkCross Network-branded merchandise or to gain access to exclusive events, fostering community engagement and brand loyalty.
Governance Tax
Mechanism: Participating in governance, whether by voting on proposals or submitting them, incurs a tax payable in CP tokens. This ensures active and responsible participation, as users must contribute their CP to influence network decisions.
Token Burns
Mechanism: CP tokens collected through various utilities, including governance taxes, will be periodically burned by the platform, creating a deflationary mechanism that enhances the token’s long-term value.
CROSS Power token multiplier and emission logic
The minting and emission of the CROSS Power token is automated based on the multiplier logic. Here’s an example of how this multiplier logic works. For this logic, we first need to understand what instances/interactions on the zkCross Network are. Instances/interactions on the zkCross Network are any user actions on the zkCross Network. These actions can be defined by Transactions on the zkCross Exchanges such as On-chain / Cross-chain Swaps and Bridging, Staking CROSS tokens, Adding Liquidity to DEX trading pools, Adding liquidity for Bridging pools or interacting with our telegram mini clicker game. Each of these instances will have some metrics and value associated with them.
Example of Multiplier Logic
To illustrate how the Multiplier Mechanism works, let’s consider an example:
Staking CROSS Tokens:
User stakes 100,000 CROSS tokens at a 12% APY, with the current value of CROSS tokens being $0.10.
If the CROSS Power multiplier for staking is set at “2x,” then for every CROSS token earned through staking, the user will also earn 2 CROSS Power tokens.
Over a year, the user would earn 12,000 CROSS tokens (100,000 * 12%) and 24,000 CROSS Power tokens through staking.
3. vCROSS Token
Overview
Name: vCROSS Ticker: vCROSS Fixed Max Supply: 2,100,000,000 Token Type: ERC-20 (Mint/Burn)
vCROSS tokens are the governance tokens of the zkCross Network. These non-transferable tokens are minted on a 1:1 basis when users stake their CROSS tokens. vCROSS tokens enable holders to participate in governance without the need to unstake their CROSS tokens, thus ensuring continuous staking rewards and value accrual.
Utilities
Voting on Governance Proposals
Mechanism: Each vCROSS token grants one vote on governance proposals, allowing users to have a direct say in the future development of the zkCross Network.
Proposal Submission
Mechanism: In the future, users will be able to submit proposals for consideration by the community. Submitting a proposal will require a certain amount of vCROSS tokens to be staked, ensuring that only serious and well-considered proposals are brought forward.
Conclusion
The zkCross Network’s token model is designed to drive value accrual for the CROSS token while fostering a robust and sustainable ecosystem through the use of CP and vCROSS tokens. By separating utility, rewards, and governance functions across three distinct tokens, zkCross Network ensures that each aspect of the ecosystem is optimized for long-term growth and user engagement. This multi-token approach not only enhances the network’s functionality but also protects the value of the primary CROSS token, making it an attractive proposition for investors and users alike.
By integrating these mechanisms, zkCross Network aims to unify the fragmented DeFi landscape, driving mass adoption and establishing itself as a leader in blockchain interoperability and chain abstraction infrastructure.
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