Tokenomics

The core value of our network emerges from the synergistic contributions of our community members; indeed, the collective output significantly exceeds the sum of individual contributions. Our reward system is designed to recognize users for their cumulative impact on the network rather than for the specific datasets they submit. To operationalize this principle, smart contracts systematically disburse a predetermined token budget. These tokens, known as $SLC (Silencio Tokens) are allocated to users primarily based on their contributions to the network. These contributions are measured in in-app Coins.

Disclaimer and Limitations

The following sections showcase the mechanisms behind the smart contract’s issuance of new tokens and the distribution framework employed to compensate network contributors.

The native cryptographically secure fungible protocol token of the Silencio Network (ticker symbol $SLC) is a transferable representation of attributed governance and utility functions specified within the Silencio Network’s protocol/code. It is designed exclusively as an interoperable utility token on the network.

$SLC is a functional multi-utility token that serves as the decentralized medium of exchange between participants on the Silencio Network. The primary purpose of $SLC is to facilitate a convenient and secure mode of payment and settlement between participants interacting within the Silencio ecosystem without reliance on intermediaries such as centralized entities or institutions. It is not intended to be a general medium of exchange for goods or services outside the Silencio Network, nor is it meant to be used as payment for goods or services unrelated to the issuer.

$SLC does not represent any shareholding, ownership, participation, right, title, or interest in the Silencio Network, its affiliates, or any other company or enterprise. Token holders are not entitled to any fees, dividends, revenue, profits, or investment returns, and $SLC is not intended to be classified as securities in any jurisdiction. $SLC is solely for use on the Silencio Network, and ownership grants no rights other than the ability to use $SLC to enable interaction within the network. The secondary market pricing of $SLC is independent of the Silencio team’s efforts, with no functionality or mechanisms to control or influence such pricing.

To clarify, neither the Silencio Network nor its affiliates buy or sell virtual assets or digital payment tokens (including $SLC). Any token sale or distribution occurs during a limited initial period to secure project development funds, raise market and brand awareness, and foster community engagement; this does not involve the repetitiveness or regularity that would constitute a business.

Moreover, $SLC provides economic incentives to reward users who contribute to and participate in the Silencio Network ecosystem. It creates a mutually beneficial system in which all participants are fairly compensated for their efforts. $SLC is a vital and indispensable part of the Silencio Network, as without it, there would be no incentive for users to dedicate resources toward participating in activities or providing services that benefit the entire ecosystem.

Additional $SLC is awarded to users based on their actual usage, activity, and contributions to the Silencio Network, with incentives proportional to the frequency and volume of transactions. Users not actively participating in the network do not receive $SLC incentives.