The wait is over. Parachain launch is here. Powering the Pol | HouseOfCrypto CALLS
The wait is over. Parachain launch is here.
Powering the Polkadot network
The DOT token serves three distinct purposes: governance over the network, staking and bonding.
Governance
Polkadot token holders have complete control over the protocol. All privileges, which on other platforms are exclusive to miners, will be given to the Relay Chain participants (DOT holders), including managing exceptional events such as protocol upgrades and fixes.
Staking
Game theory incentivizes token holders to behave in honest ways. Good actors are rewarded by this mechanism whilst bad actors will lose their stake in the network. This ensures the network stays secure.
Bonding
New parachains are added by bonding tokens. Outdated or non-useful parachains are removed by removing bonded tokens. This is a form of proof of stake.
