$TNODE token is a governance token built on the Ethereum network using an ERC-20 standard. It is also the lifeblood of the Trusted Node network, providing a means of exchange between native assets and derivatives and the necessary liquidity across all vaults.
The $TNODE tokenomics model includes a 5-year vesting schedule and was designed to create a self-sustaining operation by the conclusion of the vesting period.
After the first 60 months, $TNODE will reach its maximum circulating supply, by which time the network reliance on the fee model should be established. At that time, a portion of the overall supply should be deposited into the DAO escrow for governance, and the rest used to provide dynamic liquidity to assets across the platform.
The usage of $TNODE tokens will be tied to the increase in functionality offered by the platform. As a governance token, $TNODE is also effectively collateralized by the power of the DAO-owned validators, the DAO treasury, and the underlying PoS staking rewards, continuously adding Total Value Locked (TVL) to the network.
Depositing $TNODE into the DAO escrow has many added benefits for users. However, they cannot use the same tokens to provide liquidity to the vaults. Users are, therefore, incentivized to deposit only the minimal necessary tokens into DAO and/or find the best ratio of DAO vs. Vault deposits to obtain a maximal yield boost for the Vaults.
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