Questions about the TARA token
TARA tokens are used for 3 things,
- Gas fees: used to pay for transaction processing
- Staking: used to secure the network against Sybil attacks, staking will have a maximum 20% total annualized yield, rewarded in the form of inflated tokens in block rewards.
- Voting: used to vote on changes to the network.
The Taraxa core development team looked very closely into Ethereum's EIP-1559, and found its goals of making transactions fees more predictable and less volatile a highly laudable goal. Without going into details, the fixed component of the fees is burned during the process while the variable is tipped to the miner.
Something similar is likely to be implemented in the Taraxa protocol as well, we'll keep the community updated on this.
You can read more about the Foundation's proposed governance model here in our whitepaper. After mainnet deployment, the core team will work hard to build in governance mechanisms directly into the code to prepare for truly decentralized and community-driven decision-making process.