🚧 Road to mainnet — part 2: utility of tokens in the Cudos blockchain 💥
The excitement is building up as we are just a couple of weeks away from our mainnet launch! Our native blockchain will go live in the Cosmos ecosystem with the launch. As we migrate our network from Ethereum, our ERC-20 CUDOS, the underlying asset, will also migrate to native CUDOS Tokens.
The token migration is already underway, and you can read our earlier blog to know the best way to migrate your tokens. We also want to take this opportunity to introduce the utility of the CUDOS token post the mainnet launch.
The CUDOS token is the lifeblood of the Cudos blockchain, with a total max supply of 10,000,000,000 and a circulating supply of 2.80 billion CUDOS.
What’s the utility of CUDOS?
1. Pay for transactions
Holders of CUDOS can pay for their everyday purchases from leading international marketplaces using the native token. One of the massive partnerships that Cudos entered into in 2021 was with Shopping.io, which added CUDOS as a payment method on their crypto shopping platform. Consumers can buy items from Amazon (U.S., U.K., Canada, France, Italy, Spain, Germany, Australia, India, Japan, and Brazil), eBay, Walmart, and Etsy, and pay for them using CUDOS.
Within the Cudos network, the CUDOS token serves multiple purposes. Essentially, it is a utility token and can be used for transactions, including:
- Deploying smart contracts on the blockchain
- Interacting with smart contracts
- Minting NFTs
- Sending NFTs
- Commissions, etc.
The Cudos blockchain runs on the Proof of Stake (PoS) consensus, enabling token holders to earn passive income through staking while securing the network. If you are a CUDOS token holder, you can stake on our platform to earn massive rewards. The current APR is around 22.5%, with almost 1 billion tokens staked at the moment.
The CUDOS token can be used for trading on both centralised and decentralised exchanges. Staking the token in Ethereum also ensures a smooth and free transition from Ethereum to the Cudos mainnet once we migrate to our native network.
The CUDOS token is designed to act as a governance token, empowering the users to vote on active governance proposals, giving them control over decisions on the Cudos network. By participating in active proposals, they can shape the future of the network.
4. Trading in compute
The Cudos Network focuses on powering decentralised projects with computing power, so the CUDOS token is the vehicle for buying and selling compute resources and potentially obtaining discounts. Watch this space for more details about compute rewards in the coming weeks.
You can be part of Cudo Compute too. Join our free testing period and get access to free compute resources! Register your interest now!
5. Dough for validators
Users need to stake a minimum of 2,000,000 Cudos to become a validator and earn staking rewards for securing the network. Validators also have the chance to earn delegated staking rewards by backing other validators and earning in the process. They also gain the proportionate amount of transaction fees in CUDOS. Governance is critical for the validators as they can propose and vote on governance proposals and help build the future of the network.
6. Utility for developers
Developers utilise the CUDOS tokens to deploy and interact with smart contracts on the Cudos blockchain. Once our mainnet is live, we will add the ability for developers to earn a fraction of the transaction fees generated by the smart contracts they deploy. The layer 2 CUDOS Validator Network (CVN), used by blockchain protocols and developer ecosystems, receives all payments for validating the compute jobs in CUDOS.
How to migrate CUDOS ERC-20 tokens to the native blockchain
With our mainnet launch in February, holders of CUDOS ERC-20 tokens will have to migrate their tokens to the new network.
There are three ways to migrate, depending on whether you have staked the tokens on Ethereum or not. Read our blog to know more.
Meanwhile, you can join our incentivised testnet and earn rewards.
You can get involved right away by following the links below:
Cudos is powering the metaverse bringing together DeFi, NFTs, and gaming experiences to realise the vision of a decentralised Web 3.0, enabling all users to benefit from the growth of the network. We’re an interoperable, open platform launchpad that will provide the infrastructure required to meet the 1000x higher computing needs for the creation of fully immersive, gamified digital realities. Cudos is a Layer 1 blockchain and Layer 2 community-governed compute network, designed to ensure decentralised, permissionless access to high-performance computing at scale. Our native utility token CUDOS is the lifeblood of our network and offers an attractive annual yield and liquidity for stakers and holders.