Network Roles and Token Flow

Network Roles

The U2DPN Network operates with a layered node architecture, consisting of LightNodes, and MasterNodes, each contributing to the overall network performance and the token economy:

• LightNodes: LightNodes are responsible for high-performance transaction verification and routing. By staking $U2DPN, participants can operate LightNodes and earn rewards proportional to the bandwidth they process and the QoS they deliver. These nodes play a crucial role in maintaining transaction integrity within the network.

• MasterNodes: MasterNodes oversee the coordination of routing and verification processes for data transmissions. Operators must stake a larger amount of $U2DPN to run MasterNodes, ensuring they are incentivized to maintain the highest levels of service reliability. MasterNodes receive a share of protocol fees based on their work, further reinforcing their vital role in the network's functioning.

Token Flow

• Consumers pay for bandwidth services, using either Layer 1 native token or $U2DPN.

• Smart contracts allocate the payment as follows:

  • ~90% is distributed to node providers (PeerNodes and LightNodes) as rewards.

  • ~10% is retained as protocol fees, which are allocated across MasterNodes, PeerNode hosting incentives, and the buyback/burn program.

  • Node operators stake $U2DPN to increase their capacity and earn rewards. Poor performance can result in slashing or reduced payouts, ensuring that the network's performance remains optimal.

This token flow ensures that $U2DPN is actively used in network operations and that its scarcity increases in tandem with network demand.