🔵Part 6｜Token Economic Model

Part 6｜Token Economic Model

6.1 Token name and basic information

• Token name: STAR

• Token symbol: $STAR

• Token type: native public chain main currency (Layer1)

• Minimum unit: 10^-18 STAR

• Initial total issuance: 200 million (fixed total, no additional issuance)

6.2 Core uses and functions

STAR is the basic value carrier and incentive mechanism core of the StarChain network. Its main uses include:

✅ Network operation:

• _{Used as transaction fees (GAS) to maintain the stable operation of the public chain;}

• _{Used for node staking, election and network governance;}

• _{Used for cross-chain transfers, contract calls, and resource reservations.}

✅ Application ecology:

• _{As a consumption payment token for on-chain DApps (betting, rewards, tickets, props, etc.);}

• _{As a source of burning fees for ecological applications;}

• _{Developers who want to access the ecosystem must set a certain percentage of their income (2%~10%) as the STAR automatic destruction mechanism.}

✅ Governance and Community:

• _{Participate in DAO governance voting and major proposals;}

• _{Used for staking to obtain representative voting weight;}

• _{Used in scenarios such as ecological incentives, reward mechanisms, and airdrops.}

6.3 STAR Token Distribution Model

Allocation Category	%	describe
Early institutions	8%	Strategic financing support for infrastructure development and early ecosystem construction
Public Sale	10%	Community IDO/IEO and other public channels raise funds, providing early participation opportunities
Staking	12%	Node operation incentives, lock-up release in stages
Block Rewards	15%	Used for HPOS node block rewards, decreasing over time
Ecological Construction	30%	Support DApp incentives, cross-chain bridge support, developer hackathons, and community contribution rewards
Team and Consultants	15%	For core team members and strategic advisors, 5-year linear unlocking
Foundation Reserve	10%	For emergency reserves, legal compliance support, and strategic adjustments

⏱️ Unlock rhythm instructions:

• Cliff and linear release are set for the team/advisor/node part;

• All release rhythms and transparency are controlled by on-chain contracts, and the community can check the status at any time.

6.4 Deflation Mechanism Explanation

StarChain adopts a "double-burning deflation mechanism" to ensure that STAR Token has scarcity and value anchoring capabilities during the ecological expansion process:

🔥 Burning mechanism 1: Application layer burning (strong binding mechanism)

• _{All ecosystem DApps are required to set 2%~10% of the handling fee or profit as STAR burning;}

• _{The ratio setting is written into the contract layer, which is open and transparent;}

• _{The StarScan browser displays daily and monthly burn statistics for each DApp.}

🔥 Burning Mechanism 2: On-chain Gas Burning

• _{A fixed proportion of GAS is destroyed for each transaction (estimated to be 20~50%);}

• _{As trading volume grows, supply continues to decrease;}

• _{Incentivize long-term holders to achieve the linkage between network security and token value.}

🔄 Other supporting designs:：

• _{StarDAO can adjust its destruction strategy according to the development of the ecosystem;}

• _{DAO governance supports new incentive proposals: for example, introducing a “re-staking mechanism” and “burning exchange ticket rights”.}