Role of $SIDE
Last updated
Last updated
While BTC serves as the primary asset across all Side Protocol products, the $SIDE token functions as the protocol’s native utility token, playing a crucial role in these key areas:
Side is positioned as the financial layer for Bitcoin with a clear protocol revenue model. Fees generated from products such as Side Finance, Side Chain, Side Hub, Side Bridge, the native DEX, and future offerings are used to buy back and burn $SIDE, creating a deflationary mechanism to enhance its value.
In addition to $BTC, $SIDE can also be used to pay gas fees across the network. These fees are applied to all network operations, rewarding participants and ensuring security by preventing spam and denial-of-service attacks.
Side Chain, a critical component of the Side Protocol architecture, operates as a permissionless network secured through proof-of-stake and supports in-protocol delegation. Similar to other dPoS networks, users can delegate their $SIDE tokens to Side Chain validators, earning a share of staking rewards while actively contributing to network security.
$SIDE empowers the community to participate in decentralized governance by voting on key network decisions, including protocol parameter adjustments, upgrades, community treasury allocations, and other essential initiatives.
