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Aligned Incentives
SX Network aligns incentives across it's stakeholders
Incentive Alignment: Resolving fundamental tensions that arise between stakeholders through the power of mutual ownership
There exists a fundamental tension between holders of blockchain tokens and the native applications hosted on them. Token holders benefit from higher transaction fees, while applications are hurt by them. SX Network will resolve this fundamental tension by using the SX treasury to directly invest and fund the applications that run on SX Network, thereby acting as an on-chain ecosystem fund.
Applications on SX Network can apply for funding directly from the treasury, with funding decisions handled by SX token holders. Furthermore, projects can go one step further and actually do token swaps directly with the SX treasury so that SX Network and its underlying applications are fully, economically aligned.