Tokenomics

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Tokenomics
Everything you need to know about the SX Network token
SX Overview
SX Network is committed to the principles of community-led growth, ownership, and development. The SX token (SX) will serve this purpose by enabling shared community ownership and decentralized governance that will guide SX to a sustainable future. 
SX Network uses SX as its own built-in native unit of account. SX serves a dual purpose, providing a mechanism by which to pay for transaction fees on SX Network and to be used as the economic staking bond put up by SX Network validators to secure the network. 
Beyond securing the network, staking SX also powers the on-chain governance system and community treasury behind SX Network. Governance voting power is determined solely by the amount of SX that one has staked. SX is an ERC-20 token that exists on the Ethereum and Matic blockchain networks. 
SX Primary Functions
The SX token has three primary functionalities within the SX Network ecosystem:
⛏️ Staking
In order to participate in governance votes, token holders must first stake (i.e. lock up) their tokens. In return for giving up liquidity, token holders that stake tokens earn staking rewards. The SX token can be used for governance to directly impact the direction of the protocol. In order to participate in governance votes, token holders must first stake (i.e. lock up) their tokens. This protects SX governance by preventing users from buying SX tokens solely to vote on a specific proposal and then selling immediately after the vote. 
SX Staking interface on SX Bet
Staking is the act of locking up tokens for a period of time. Tokens that are staked remain in the user’s control, but they can no longer be transferred. By staking tokens, the circulating supply of the token is temporarily reduced, which also has the beneficial effect of increasing scarcity.
⛽ Transaction Fees
SX tokens are used as a medium of exchange and unit of account within the SX Network blockchain. Similar to the relationship of ETH to Ethereum, SX is the "gas" of the SX Network blockchain. Every single transaction on SX Network requires SX tokens in order to process.
This means as demand for the SX Network blockchain continues to grow, there will be increasing demand for the SX token. This will also grow the inventory of SX tokens that SX Network users will hold in their wallet. With capacity for +2,000,000 transactions per day, there is a lot of scope to increase demand for the SX token through SX Network growth.
Example of an SX Network transaction
🏛 Governance
SX allows token holders to control over all the parameters of the SX Network blockchain. It also gives holders control over the SX prediction market protocol smart contracts through the governance user interface.
The primary decisions SX holders need to make with regards to governance is how to best allocate the SX Community Fund:
SX Community Fund assets as of April 17th, 2022
SX Secondary Functions
The SX token also has a number of lesser, secondary functionalities:
🔥 Burn
The SX team is working with the Polygon Edge team to introduce EIP1559-style burning mechanism so that SX is burnt on every SX Network blockchain transaction. Additionally, all protocol fees from SX-denominated prediction market trades are currently being burnt instead of routed to the SX Community Treasury. As of April 17th, 2022, there has been a total 36,032 SX burnt since this feature launched on March 22nd.
An average of 1,441 SX is being burnt per day since SX betting went live
🏦 Collateral
SX will be utilized as collateral and locked up within the SX Network DeFi ecosystem. SX token will be the primary reserve currency within the SX Network economy, and will be the primary pair of native tokens launching on SX Network. Here is a list of sources of demand for the SX token to be used as collateral:
Liquidity Providing: Automated market maker (AMM) exchanges launching on SX Network that utilize SX as a base pair on their exchange will function as a sink of SX tokens. The higher the number of SX-based pairs, the more SX tokens will be locked up in their AMM contracts.
Stable coin Collateral: Crypto-collateralized stablecoins launching on SX Network that enable SX to be used as collateral will require large amounts of SX tokens to be locked up in order to grow their stablecoin TVL. This will create a large amount of demand for the SX token.
Lending Pools: Lending platforms that launch on SX Network that offer SX loans will require large amounts of SX to be supplied to their platform in order to provide this borrow liquidity. This, in turn, will increase demand for the SX Network token.
🤑 Fee Discount
Token holders that stake SX also earn a reduction on any exchange fees they pay while using the SX prediction market protocol (and its associated apps such as SX Bet), with varying percentages based on their total staked balance. 
Users who stake SX tokens will automatically be rebated a portion of their protocol betting fees every day. The discount schedule can be changed at any point by SX tokens via a governance vote. The current schedule is as follows:
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SX Secondary Functions
🔥 Burn
🏦 Collateral
🤑 Fee Discount