What currency does ONDO coin belong to?

ONG Currency, the native token of the Ontology blockchain, serves as a utility token used to pay for transaction fees, enable governance participation, and access services within the ecosystem.

Dec 03, 2024 at 05:28 am

What Currency Does ONDO Coin Belong To?

Introduction

ONDO coin, also known as Ontology Gas (ONG), is the native utility token of the Ontology blockchain, an open-source, high-performance public blockchain designed for building decentralized applications (dApps) and smart contracts. As a utility token, ONG plays a crucial role within the Ontology ecosystem, serving various functions that support the blockchain's operations and governance.

What is ONG Currency?

ONG is the official cryptocurrency of the Ontology blockchain, enabling users to participate in the network's governance, pay for transaction fees, and access various services and features within the Ontology ecosystem. It is designed to incentivize participation, secure the network, and facilitate the development and growth of the Ontology ecosystem.

Key Roles of ONG Currency

1. Transaction Fees:

   • ONG serves as the primary means of paying for transaction fees on the Ontology blockchain.
   • Users must pay a transaction fee in ONG to execute transactions, including transferring tokens, deploying smart contracts, and interacting with dApps.
   • Transaction fees help compensate network participants, such as validators, for their efforts in securing and maintaining the blockchain.

2. Governance:

   • ONG holders have governance rights and can participate in the decision-making process of the Ontology blockchain.
   • They can vote on proposals related to network upgrades, protocol changes, and other matters affecting the blockchain's governance and development.
   • The voting power of each ONG holder is proportional to the amount of ONG they hold, giving them a voice in shaping the future of the Ontology ecosystem.

3. Staking:

   • Users can stake their ONG to become Ontology Consensus Node (OCN) voters.
   • OCN voters play a critical role in securing the Ontology blockchain by validating blocks and participating in the consensus mechanism.
   • In return for staking their ONG, voters receive rewards in the form of additional ONG, incentivizing their participation and contributing to the stability and security of the network.

4. Access to Services and Features:

   • ONG can be used to access various services and features within the Ontology ecosystem.
   • Examples include using ONG to pay for storage on the Ontology Distributed File System (ODFS), accessing decentralized oracles through Ontology Developer Tools (ODT), and participating in decentralized exchanges.
   • By holding and using ONG, users can unlock additional value and functionality within the Ontology ecosystem.

5. Token Economics:

   • The total supply of ONG is capped at 1 billion tokens.
   • ONG is generated through a process called "minting," where new tokens are created and distributed to OCN voters as a reward for their participation in securing the network.
   • The minting rate of ONG is gradually reduced over time, ensuring a controlled and predictable supply of tokens.

Conclusion

In summary, ONDO coin (ONG) is the native utility token of the Ontology blockchain. It serves as the primary means of paying transaction fees, enables governance participation, incentivizes staking, facilitates access to services and features within the ecosystem, and has a well-defined token economics model. As the Ontology ecosystem continues to grow and evolve, the demand for ONG is expected to increase, driven by its essential role in supporting the network's operations and governance.