Token Utility

DEAI is the foundational token of Cypher, unlocking core functionalities within the decentralized AI ecosystem.

1. Gas Token for Cypher Network

• $DEAI is required for transaction fees and gas costs on the Cypher FHE-EVM Layer, supporting secure, privacy-preserving AI computations.

2. Staking for Network Security

• Validators and delegators lock $DEAI tokens as collateral to secure the network, ensuring trustless validation.

• Stakers earn rewards for participation, fostering decentralized governance and economic incentives.

3. Governance Participation

• $DEAI holders gain voting rights, enabling them to participate in key decisions such as protocol upgrades, parameter adjustments, and ecosystem development.

4. Access to Cypher Nodes

• Existing $DEAI holders can operate Cypher Nodes to validate blocks and earn rewards, or delegate tokens to nodes for passive incentives.

• Cypher Nodes leverage FHE and PoS to provide fast, secure, and affordable infrastructure for AI-driven dApps.

5. Deflationary Mechanisms

• A portion of transaction and staking fees is permanently burned, reducing token supply and creating deflationary pressure.

• Validators face penalties for downtime or malicious activity, with a portion of penalties burned, further enhancing long-term value.