Token Utility
Last updated
Last updated
The $SOLO token serves as the native utility token of the SoloChain and ecosystem, designed as a cornerstone of its operations as a Layer 2 scaling solution built on Ethereum. Utilizing the OP Stack, SOLO leverages Optimism's consensus mechanism to significantly enhance Ethereum's scalability, enabling faster, cheaper, and programmable transactions while maintaining the robust security properties of Ethereum's base layer.
Each on-chain transaction within the SoloChain has the potential to reward participants with SOLO tokens, further promoting ecosystem activity and ensuring that contributions, both large and small, are recognized. However, the reward mechanism operates on a random ranged probability, meaning that while every transaction has a chance to earn rewards, receiving a reward is not guaranteed. This approach introduces an element of unpredictability, encouraging consistent engagement while maintaining fairness across the ecosystem.
Reputation staking allows participants to enhance their standing within the SoloChain ecosystem. By staking $SOLO tokens, participants receive sSOLO (staked SOLO), which increases their network reputation and qualifies them for boosted rewards during transaction and DePIN mining.
This system rewards active contributors with higher visibility and better opportunities to benefit from network participation. Reputation staking reflects a participant's commitment to the ecosystem, incentivizing sustained engagement and long-term contributions.
Participants can take their contributions further by restaking sSOLO into specific mining curve launches, converting it into rsSOLO (restaked SOLO). Restaking ties reputation staking to specific projects or mining pools, enabling participants to earn additional rewards tailored to each mining launch pool’s structure.
This flexibility allows users to support projects they value while amplifying their returns. Restaking provides an avenue for deeper engagement with SoloChain’s ecosystem, offering participants more opportunities to align their actions with their interests and goals.
