Side Protocol
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  • overview
    • Side Introduction
      • Preliminary
      • Architecture
        • Bitcoin Compatibility Layer
        • Oracle++
        • Trustless Relayer
        • Native BTC-Collateralized Lending System
          • Lending Workflow Overview
          • Loan Assignment
          • Repayment
          • Liquidation
          • Loss of Liveness
        • Additional Features
        • Interoperability
      • Security
    • Front-end
      • Side Station
      • Side Hub
      • Side Wallet
      • Product FAQs
        • How to bridge sBTC
        • How to bridge Runes
        • How to bridge USDC
        • How to switch gas token
        • How to switch wallet address type
    • $SIDE Token
      • Role of $SIDE
  • Developer
    • Mainnet
      • Side Chain Node Installation & Setup
      • Run a Full Node
      • Run a Validator
      • Cosmovisor
      • State Sync
    • RPC
  • About
    • Official Links
    • General FAQs
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On this page
  • Value Accrual
  • Paying for Transactions
  • Staking
  • On-chain Governance
  1. overview
  2. $SIDE Token

Role of $SIDE

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Last updated 5 months ago

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:

Value Accrual

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.

Paying for Transactions

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.

Staking

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.

On-chain Governance

$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.