---
# System prepended metadata

title: Token

---

---
title: Token
id: token
displayed_sidebar: basicsSidebar
---
# Token
Online P2P exchanges between Motor Nodes have zero tolls. Outlined are some methods for the Sonr Utility Token.

*   **Swapping** - Highway nodes that facilitate swaps from Sonr Token for ETH, BTC, etc. earn Token.

*   **Maintenance** - Deployed Highway nodes earn Token for helping regulate the network

*   **Offline Exchanges** - Motor Nodes pay a Toll when interacting with offline peers, or storing data in long term.

### Distribution

This token allocation is a 🚧 WIP, based on a Token Supply of 500,000,000.

| Segment   | Tokens ($SNR) | Stake (%) |
| :-------- | :------------ | :-------- |
| Community | 250,000,000   | 50%       |
| Core Team | 125,000,000   | 25%       |
| P1 Sale   | 80,000,000    | 16%       |
| P2 Sale.  | 45,000,000    | 9%        |

### Airdrops & Rewards

*   🚧 Work in Progress

***

# Tokenomics

Market Price of Tokens and Platform User Base are the two key endogenous variables. The Equilibrium token pricing formula exhibits three desirable features.

1.  Token Value depends on the Sonr Platforms productivity

2.  User base enters positively into the pricing formula

3.  User exchange type randomness matters for both platform adoption and token pricing.

> Tokens in our model facilitate transactions. They should be distinguished from security tokens that represent claims on issuers' cashflows or rights to redeem products/services.

### Platform and Agents

The platform is characterized by the productivity that evolves according to a geometric Brownian motion:

> The platform allows agents to conduct transactions that are settled via a medium of exchange. We consider two cases for the medium: the generic good, which is the numeraire, and the local platform currency (token).

### User Utility value

Conditioning on participating on the platform, a platform user $i$ derives a utility flow from her holdings of the medium of exchange,  essentially the number of tokens a user holds.

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**The first term is the transactional benefits of**&#x20;

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**Let**  **equal the number of Sonr users with more than a 0 balance, so formally,  is the measure of **

We choose this specification of utility flow with the following considerations.

1.  the utility flow increases in . It captures the positive user network effect, as it is easier to find a transaction counter-party in a larger community

2.  the marginal utility decreases with , captured by . The exponents of  and  sum up to one for analytical convenience.

3.  agents' transaction needs (or types), , are heterogeneous.

> 🚧 Work in Progress

***

# Structure

> 🚧 Work in Progress

### Governance

### Staking

### Exchange

### Swapping

### IBC
