How does Sia’s two-token model work?
Sia uses two tokens, Siacoins and Siafunds.
Siacoins are used for utility; renters buy storage space on the Sia network with Siacoins and hosts are paid in Siacoins for selling their storage space. Hosts also post collateral in Siacoins, and miners mine Siacoins via Proof-of-Work.
Siafunds are used for revenue sharing; a 3.9% fee from every storage-related transaction on the Sia network is distributed to the holders of Siafunds tokens.
We believe Sia’s two-token model creates an ideal ecosystem, where the Sia core team and Siafund investors are incentivized to focus on product development and long-term, sustainable network growth.
Interested in learning more? Read our blog post about Sia’s two-token model and the problems with ICOs.