The Government Network token economy is created to facilitate, unify, and build bridges between the ecosystem, economies, and people. It is characterised by a dual token structure comprising of the Nation token (NTN token) and the Government token (GOV token) working side by side each specialised for their respective purposes.
The NTN tokens will come into existence at the DAO launch. They are issued by the DAO's internal exchange and operate the ecosystem’s economy, ranging from the payment of transaction fees to an operational currency for micro-transactions and e-commerce. NTN tokens are created or minted when purchased from the internal exchange, and destroyed or burned when sold to the exchange.
The GOV tokens are issued during the Crowdsale and have a role in the governance of some of the blockchains in the Government Network, as well as being swappable with NTN tokens at the fixed rate of 100 NTN tokens per GOV token. The swaps happen in accordance with a predefined procedure directly linking the participation and growth of the Government Network Ecosystem to the occurrence of the token swaps.
The internal exchange holds a reserve that backs the NTN tokens. The reserve is funded by the purchase of NTN tokens, as well as part of the transaction costs received by the network. The size of the reserve is directly correlated to purchased NTN tokens and transaction fees paid to the Government Network. The reserve of the internal exchange needs to maintain a constant minimum of 85% of the value of all outstanding NTN tokens. – Ensuring constant liquidity and solvability. NTN tokens can be purchased and sold to the internal exchange freely at the fixed exchange rate of 1 NTN token per 1 $.
Each time the reserve size exceeds 85% of the value the outstanding NTN tokens, the internal exchange reserve will mint new NTN tokens so that the reserve size returns to 85%. The newly minted NTN tokens are swapped equally amongst all outstanding GOV tokens*.
*Conditions apply, for more information read the Government Network whitepaper.