Understanding $SUPRA Token and Its Functions

Dec 12, 2024

$SUPRA Token Utility - July 2023

Abstract

  • Supra is a cross-chain IntraLayer protocol for Web2 and Web3 automation.
  • Powered by $SUPRA token, which facilitates value exchange and harmonizes participant incentives.

1. Motivating Vision

  • Digital Finance Ecosystem as an Organism:
    • Comparable to a digital organism requiring interaction among its parts.
    • Supras IntraLayer acts as a central coordination hub, akin to a nervous system.
    • Information flow facilitated by Supra’s oracle and bridge services.
  • Supras Components and Functions:
    • IntraLayer as the central command center (brain).
    • Automation service as the spinal cord, providing reflexivity.
    • Digital assets compared to blood, facilitating value exchange and network security.
    • Interconnected liquidity pools as blood vessels, enabling value transport.

2. The System

  • Fragmentation Issues in Digital Finance:
    • Data: Lack of synchronization across blockchains.
    • Value: Restricted asset flow between blockchains.
    • Liquidity: Fragmented and costly to unify, hindering DeFi.
  • Platform as a Clearing Layer:
    • Aggregates state information from blockchains trustlessly.
    • Supra's Infrastructure:
      • Oracle service: Secure blockchain and system connection.
      • Cross-chain bridge: Validates cross-chain messages.
      • High throughput network: Efficient transaction layer.
      • Automation service: Enables automated transaction scheduling.
      • Distributed VRF service: Provides secure randomness.

Financial Infrastructure

  • Supras Liquidity Network:
    • Operates as interconnected liquidity pools.
    • Facilitates value transfer and price discovery.
  • Components:
    • Dynamic Function Market Maker (DFMM): Enhances trading efficiency.
    • Fiscal policy framework: Automates economic interactions.
    • Dynamically Structured Pool Protocol (DSPP): Insurance and risk management.
    • Cross-chain Inventory Management System (CIMS): Improves financial management.

3. The $SUPRA Token

  • Roles of $SUPRA Token:
    • Staking token for network security.
    • Gas fee for transactions and services.
    • Governance token for community decision-making.

3.1 Staking Token

  • Ensures network security by locking tokens as collateral.
  • Service providers incentivized to maintain network integrity.
  • Aligns stakeholder incentives.

3.2 Gas Fee Token

  • Used for paying transaction fees.
  • Protects computational resources by requiring upfront fee payment.
  • Used across integrated networks.

3.3 Governance Token

  • Involves multiple stakeholders in decision-making.
  • Introduces soulbound NFTs for governance, promoting meritocracy.
  • Ensures decentralized and secure governance architecture.