Token Economics

TNZO is the native governance and utility token of the Tenzro Network. It powers gas fees, staking, settlement, governance, and provider rewards.

Token Overview

Name	TNZO
Decimals	18 (same as ETH)
Total Supply	1,000,000,000 TNZO
Network Fee	0.5% on all settlements
Community Allocation	35-40%

Token Utility

Gas Fees

All transactions on Tenzro Ledger require TNZO for gas. The EIP-1559 fee market dynamically adjusts base fees with a portion burned and priority fees going to validators.

Staking

Validators and providers stake TNZO to participate in consensus and earn rewards. Automated slashing enforces honest behavior (10% penalty for equivocation). Equivocation detection is fully wired via the SlashingCallback trait. Minimum stake is configurable per network role.

Settlement

All AI inference payments and provider fees settle in TNZO. The 0.5% network fee on settlements flows to the treasury for distribution to validators and stakers.

Governance

TNZO holders participate in on-chain governance. Proposals cover network parameters, treasury spending, and protocol upgrades. Voting power is proportional to stake.

Liquid Staking (stTNZO)

stTNZO is a liquid staking derivative that represents staked TNZO. It enables stakers to maintain liquidity while earning staking rewards.

Exchange Rate: Rebasing exchange rate that increases over time as staking rewards accrue
Multi-Validator: Delegated across multiple validators for risk distribution
Protocol Fee: 10% (1000 bps) of staking rewards
Unbonding Period: 7 days
Decimals: 18 (same as TNZO)

Fee Structure

Fee Type	Rate	Destination
Transaction Gas	EIP-1559 dynamic	Base fee burned, priority fee to validators
Settlement Fee	0.5%	Treasury → validators and stakers
Liquid Staking	10% of rewards	Protocol treasury

Treasury

The Network Treasury accumulates fees from settlements and protocol operations. Withdrawals require multisig approval from designated signers. Treasury funds are distributed to:

Validator rewards (epoch-based distribution)
Staker rewards (proportional to stake)
Protocol development and ecosystem grants
Network security and infrastructure

Code Example

use tenzro_token::{TokenConfig, StakingManager, Amount};

// Token configuration
let config = TokenConfig {
    name: "TNZO".to_string(),
    decimals: 18,
    total_supply: 1_000_000_000 * 10u128.pow(18),
    network_fee_bps: 50, // 0.5%
};

// Stake TNZO
let mut staking = StakingManager::new();
staking.stake(validator_address, Amount::tnzo(1000.0))?;

// Check staking rewards
let rewards = staking.pending_rewards(validator_address)?;
println!("Pending rewards: {} TNZO", rewards);