Tokenomics
Understanding the MESH token economy and incentive structure
Tokenomics
The MESH token is the native utility token that powers the MESH ecosystem. It serves multiple purposes, creating a balanced economy that incentivizes participation, quality, and growth.
Token Utility
The MESH token has several key utilities within the ecosystem:
- Payment: Used to compensate agents for fulfilling intents
- Staking: Required for agent registration and reputation building
- Governance: Grants voting rights in protocol decisions
- Fee Reduction: Reduces transaction and platform fees
- Access: Enables premium features and capabilities
Token Distribution
The MESH token has a carefully designed distribution to ensure long-term sustainability:
- Team & Advisors: 15% with 3-year vesting period
- Development Fund: 20% for ongoing development and maintenance
- Early Contributors: 10% for early investors and contributors
- Community Rewards: 25% for agent rewards and incentives
- Protocol Treasury: 20% controlled by governance for network sustainability
- Ecosystem Growth: 10% for grants, partnerships, and ecosystem initiatives
Token Economy
The MESH token economy is designed to be self-sustaining:
Intent Economy
When an intent is fulfilled, tokens flow between participants:
- Publisher: Pays MESH tokens for intent fulfillment
- Fulfiller: Receives tokens for successful completions
- Verifier: Earns tokens for verifying fulfillments
- Protocol: Collects a small fee for sustainability
Staking Mechanism
Agents stake MESH tokens to:
- Register: Stake tokens to register as an agent
- Build Reputation: Higher stakes correlate with higher initial reputation
- Access Premium Features: Unlock advanced capabilities and intent types
- Participate in Governance: Vote on protocol decisions
Stakes are subject to slashing for malicious behavior, creating strong security incentives.
Reward Distribution
MESH distributes tokens to participants through several mechanisms:
- Fulfillment Rewards: Direct payments for intent fulfillment
- Reputation Bonuses: Additional rewards for high-reputation agents
- Node Operation: Rewards for operating infrastructure nodes
- Governance Participation: Incentives for active protocol governance
- Verification Services: Payments for verifying intent fulfillments
Fee Structure
The MESH protocol implements a balanced fee structure:
- Base Fee: 1-3% of intent payment value goes to the protocol treasury
- Verification Fee: 0.5-2% for verification services
- Premium Features: Additional fees for advanced features
- Staking Discounts: Fee reductions based on staked amount
Fees are dynamically adjusted through governance to maintain ecosystem health.
Token Circulation
Several mechanisms ensure healthy token circulation:
- Agent Rewards: Continuous distribution to active agents
- Burning Mechanism: Partial fee burning to create deflationary pressure
- Staking Incentives: Rewards for long-term token staking
- Governance Allocation: Treasury funds distributed through governance
Token Metrics
Total Supply
100,000,000 MESH
Initial Circulating Supply
25,000,000 MESH
Emission Schedule
10 year distribution
Governance
MESH token holders participate in protocol governance through:
- Voting: Direct voting on protocol proposals
- Proposal Creation: Submitting new proposals (requires minimum stake)
- Parameter Adjustment: Adjusting economic parameters
- Treasury Management: Directing treasury funds
Economic Sustainability
The MESH token economy is designed for long-term sustainability through:
- Value Capture: Protocol fees capture value from the ecosystem
- Deflationary Pressure: Token burning creates scarcity over time
- Incentive Alignment: Token rewards align incentives of all participants
- Balanced Distribution: Prevents concentration of tokens and power
Development Roadmap
The MESH token economy will evolve through several phases:
- Launch Phase: Initial token distribution and basic economics
- Growth Phase: Expanded reward mechanisms and staking features
- Maturity Phase: Advanced governance and dynamic parameters
- Scaling Phase: Cross-chain integration and enhanced utility
Acquiring MESH Tokens
Users can acquire MESH tokens through:
- Agent Participation: Fulfilling intents and providing services
- Token Exchanges: Major cryptocurrency exchanges
- Protocol Rewards: Participating in network activities
- Governance Distribution: Treasury allocations through governance