The S token simultaneously serves as the protocol’s native deflationary currency, the access token for network consensus and validation, and the vehicle for governance through vote-escrowed staking—each function tightly linked to either network security, protocol control, or value accrual.
This sub-VCM represents the S token's role as a token for blockspace purchases and the deflationary appreciation due to fee burning. Burnt fees originate from transactions to apps not participating in the FeeM (fee monetization) scheme.
This sub-VCM represents the value accrued from running a validator participating in the active validation set:
Note that the target APR depends on the stake rate of the S token. Check the VCIP section for details.
Deflationary vote-escrowed token sub-VCM represents value derived from controlling the decision-making regarding resources, parameters, or updates on the protocol level:
It should be noted that the total volume of grants distributed directly affects the deflation caused by burning the excess current funding emissions (the burning is done annually, and the total annual current funding emission is 47,625,000 S).