Tokenomics

Frequency's economic model has been designed to optimize for the scalability concerns associated with social networking activities at population scale, broadly defined as any interaction between two or more participants in the global network. The design anticipates a mix of data focused transactions centered around writes, updates, and reads applied to a highly scaled corpus of data. Key objectives of the design are to minimize price volatility and facilitate value capture over the long term.

Like most blockchains, Frequency enables transaction fees to be paid in its native token: Mainnet utilizes a utility token called FRQCY, while on Testnet, the token is denoted as XRQCY. In addition to tokens, Frequency also utilizes a renewing stake-based alternative, Capacity, that allows Providers to perform certain types of transactions without expending utility tokens.

This section covers Frequency's incentive model and key cryptoeconomic elements such as token distribution and the inflation system. The incentive model focuses on the three core features: Collator Rewards, Capacity Staking, and Provider Boosting.