Cypher Technical Documentation
  • Introduction
    • Overview
    • Key Features and Technical Advantages
    • Developer Focused Development
  • Technical Innovation
    • Fully Homomorphic Encryption EVM (fhEVM)
    • Layer 3 Architecture
    • Privacy-Preserving Data Management
    • Seamless Integration
    • Optimized for Privacy-Critical Applications
  • Cypher’s fhEVM Technology
    • What is fhEVM?
    • Architecture of fhEVM
    • Detailed Supported Operations in fhEVM
  • Deploying Smart Contracts on Cypher Testnet
    • Configuration and Deployment
    • Obtaining Testnet Tokens
  • Operations in a fhEVM Framework
    • Concepts
    • Random
    • Secret Store and Access Control in Encrypted Smart Contracts
    • Using fhevmjs for Encrypted Smart Contract Development
  • Tokenomics V2
    • $DEAI Token
    • Token Utility
    • Token Distribution
  • Cypher Layer 3 Tech Integration
  • Glossary
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  1. Tokenomics V2

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.

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Last updated 5 months ago