Understanding SWAN Token: A Guide to Swan Chain’s Tokenomics

Swan Chain - Building A Full Toolset AI Blockchain

5 min readMay 31, 2024

Explore Swan Chain’s SWAN token: a decentralized computing platform driving AI adoption through innovative tokenomics, governance, and user incentives.

Swan Chain is a decentralized infrastructure utilizing OP Stack’s Ethereum Layer 2 tech to accelerate AI adoption. Central to this ecosystem is the SWAN token, a native cryptocurrency that facilitates and incentivizes participation within the network.

This article delves into the intricacies of the SWAN token, its unique features, and its role in ensuring the functionality and sustainability of the Swan Chain ecosystem.

Read the full tokenomics here: Protocol Stack — Token

The Swan Chain Vision

Before delving into the intricacies of the SWAN token, it’s essential to understand the ambitious vision behind Swan Chain. This DePIN built for AI, Leveraging OP Stack’s Ethereum Layer 2 technology, aims to accelerate AI adoption by providing comprehensive solutions spanning storage, computing, bandwidth, and payments.

In a world where data processing and analysis are becoming increasingly crucial, Swan Chain offers a seamless allocation of computational resources, empowering developers, businesses, and individuals to harness the power of distributed computing seamlessly.

The SWAN Token: Powering the Ecosystem

The SWAN token is the lifeblood of the Swan Chain ecosystem with a fixed total supply of 1 billion tokens, ensuring scarcity and resistance to inflation over time. The tokenomics are designed to support Swan Chain’s growth and sustainability, with the following allocation:

Investors (20%): Funds the initial development and expansion of Swan Chain.
DAO Treasury (20%): Manages investments, legal costs, and financial necessities.
Ecosystem Fund (25%): Supports ecosystem growth through grants and projects.
Core Contributors (15%): Rewards developers and team members integral to the network.
Airdrops (20%): Distributes tokens to stimulate network participation and engagement.

How the SWAN Token Functions

The SWAN token fuels the SwanChain ecosystem, serving as the medium of exchange for various transactions and incentives within the network. Here’s how the SWAN token functions:

Incentivizing Participation

Swan Chain incentivizes network participants, including Edge Computing Providers (ECPs), Fog Computing Providers (FCPs), and Market Providers (MPs), by distributing SWAN tokens as rewards for their contributions. This encourages active participation and ensures the network’s continued growth and reliability. Check the status of this computing network here: Orchestrator — Provider Status.

Collateral and Slashing Mechanism

To maintain network integrity, all providers must stake a certain amount of SWAN tokens as collateral. This collateral is subject to a slashing mechanism, where fraudulent activities or non-compliance with network rules can result in a portion of the staked tokens being burned or confiscated. This deters malicious behavior and promotes trust among participants.

Universal Basic Income (UBI)

Swan Chain implements a Universal Basic Income (UBI) system, distributing a portion of SWAN tokens to eligible network participants. This ensures sustained engagement and rewards valuable contributions to the ecosystem. Read more about UBI in the articles “What is ZK-UBI Marketplace and What It Means for The ZK Ecosystem?” and “Swan zk-UBI: Building a Decentralized ZKPs Computing Market with Filecoin Integration”

Governance and Decision-Making

Holding SWAN tokens grants community members the right to participate in the governance of the Swan Chain network. Stakeholders can vote on important decisions, such as protocol upgrades, resource allocation, and strategic initiatives, shaping the future direction of the platform. Read more about governance here: Protocol Stack — Governance.

The SWAN Ecosystem

The SWAN token is the glue that binds the various components of the Swan Chain ecosystem together, facilitating seamless interaction and harmonious balance. This ecosystem includes:

Fog Computing Providers (FCPs): These providers offer a layered network that extends cloud capabilities to the edge, enabling services like AI model training and deployment.
Edge Computing Providers (ECPs): ECPs focus on processing data for near real-time applications at the network’s edge, such as IoT sensor data analysis and image recognition.
Market Providers (MPs): MPs facilitate the allocation of computing jobs to providers using an auction engine for job distribution and a payment engine for financial transactions. Read more about Swan Chain’s distributed computing framework in “Introduction to Edge Computing Provider and Fog Computing Provider in Swan Chain”.
DAO Treasury: The decentralized autonomous organization (DAO) Treasury manages investments, covers legal costs, and handles other financial necessities within the Swan Chain ecosystem.
Ecosystem Fund: This fund supports ecosystem growth through grants, projects, and other initiatives, fostering innovation and nurturing the Swan Chain community.
Marketplace Users: They can participate in various network activities, purchase products, and earn rewards.

How to Earn SWAN Before TGE

Join the Atom Accelerator Race (AAR), a two-month initiative running from April 29th to June 29th, featuring a massive 15 million SWAN Credits pool. After the Token Generation Event (TGE), 5 Credits will convert to 1 SWAN.

Users and developers can earn Swan Credits during this period by engaging with the Proxima Testnet in several ways:

Stress-test the Network: Participate in transactional activities to test and improve the performance of Swan Chain.
Contribute as a Computing Provider: Offer your idle computing resources to support the network’s computational needs.
Deploy AI and ZK Applications: Develop and deploy artificial intelligence (AI) and zero-knowledge (ZK) applications on the Swan Chain network.
Experiment with Lagrange: Use the Lagrange platform for AI model deployment and management.
Participate in Community Events: Engage in community events, including Galxe, and AMAs, to earn additional credits.

Conclusion

The SWAN token is the cornerstone of the Swan Chain ecosystem, driving innovation and participation through a well-structured tokenomics model and robust governance framework. By joining the Atom Accelerator Race and engaging with the Proxima Testnet, you can earn SWAN credits and play a crucial role in shaping the future of decentralized computing.

Don’t miss this opportunity to be part of a revolutionary platform that combines the power of blockchain and AI to create a more efficient and inclusive digital economy.

About Swan Chain:

Swan Chain, established in 2021, DePIN built for AI. Leveraging OP Stack’s Ethereum Layer 2 technology, it pioneers the fusion of Web3 with AI, offering comprehensive solutions spanning storage, computing, bandwidth, and payments. By harnessing underutilized computing power from a network of community data centers, Swan Chain drives down computing costs by up to 70% while enabling monetization of dormant assets. Innovative decentralized marketplaces for storage, AI, and Zero-Knowledge proofs, coupled with LagrangeDAO’s efficiency in AI model deployment, make Swan Chain’s AI acceleration seamless and affordable.

Investors:

Binance Labs, Protocol Labs, Waterdrip Capital, Chainlink Labs, Outlier Ventures, SNZ Holdings and more.

Partners:

Nvidia, Google Web3 Startup Program, Microsoft Startup Program, Chainlink BUILD, Filecoin Orbit.

Website: https://www.swanchain.io
Twitter: https://twitter.com/swan_chain
Telegram: https://t.me/swan_chain/
Discord: https://discord.gg/swanchain
LinkedIn: https://www.linkedin.com/company/swancloud