Token Utility

Introduction

The ICN Token (ICNT) is the core utility token that powers the Impossible Cloud Network (ICN). The token is used to access network resources, reward network participants, and to secure the network.

Key points:

• Accessing Network Services: Service Providers (SPs) need ICNT to obtain access to network resources such as data storage and computing capacity.

• Rewarding Network Participants: Hardware Providers (HPs) and SLA Oracles are rewarded with ICNT for their network contributions

• Securing the Network: Hardware Providers (HPs) lock collateral in ICNT when committing hardware resources to the network, ensuring that the network remains decentralised, reliable, and secure.

• Enabling Governance: In the future, ICNT will play a critical role in governance, enabling token holders to participate in key decisions that shape the network.

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Core Functions of ICNT

Accessing Network Services

Service Providers (SPs) users are required to use ICNT to access ICN's network resources such as cloud storage capacity. For more details, see the Access to Network Resources page.

SP's ICNT access requirements are partly distributed to Hardware Providers (HPs) as rewards for maintaining the network and partly to the Protocol Treasury to fund ongoing development of ICN.

To understand more about the roles and operations of SPs within the ICN, refer to the Service Providers page.

Rewarding Network Participants

Hardware Providers (HPs) and delegated stakers are rewarded with ICNT for their network contributions. These participants are crucial for the stability and efficiency of the network, and their performance directly impacts their rewards.

• Hardware Providers (HPs): HPs earn ICNT for providing and maintaining network resources (such as storage capacity). The more reliable and performant their services, the more their resources are being used by SPs are the the more they are rewarded. Learn more about the HP reward system on the HPs page.

This incentive structure ensures that the network is reliable, decentralised, and self-sustaining, with rewards directly tied to the quality of service provided by HPs and the reliability of SLA Oracles.

Collateral

Hardware Providers (HPs) must lock up a certain amount of collateral in the form of ICNT to contribute network resources to ICN. This collateral acts as a security deposit, ensuring that HPs provide reliable services and adhere to network standards.

Key points:

• Collateral Requirements: HPs must lock up collateral proportional to the amount of network resources they contribute.

• Commitment Period: HPs must lock their collateral for a minimum period, with the option to extend in 6-month increments. The longer the commitment period, the higher the rewards, thanks to a tiered reward system.

HPs are incentivised to lock collateral for longer periods, as this increases their likelihood of being selected for service requests, ultimately enhancing their rewards.

• Staking and Slashing: Collateral is subject to slashing if HPs fail to meet their service level requirements, and there are mechanisms in place for delegated staking, allowing external investors to participate. More details on these mechanisms can be found in the Staking and Slashing sections.

For further information on how the collateral system works, including tiering, overcollateralisation, and slashing, please see the Collateral Documentation.