What is the SWINGBY token?
Discover how SWINGBY tokens fuel the Skybridge protocol.
SWINGBY runs as a BEP2 token on the Binance Chain. (SWINGBY token migrated to ERC20) It is primarily used to prove eligibility to participate in a TSS group and represents the financial commitment ('the bond') for network validators to behave properly.
Future use cases such as governance and fee reductions are currently investigated. In the future, the SWINGBY token is expected to be issued on other blockchains as a peg that will be connected with a Swingby Skybridge.
Swingby Skybridge is designed as a permissionless network where no central authority can determine who can participate in a group or not. To do so, Swingby Skybridge node operators ( 'metanodes') must prove that they own SWINGBY tokens, and lock (or stake) them for as long as they intend to participate in a TSS group.
To join a TSS group, a participant must acquire SWINGBY and have owned it for a period of time. Then, a participate can prove this ownership when TSS rounds (including public key creation and the signing events) occur.
Nodes are selected to participate in signing (and earn fees) based on their seniority i.e., how long the node has been operational for.
A node will start accrue up-time once it fulfills the peer requirements and is connected to the network. It is a simple seniority prioritization and thus different from coin-age; a node needs to fulfill the SWINGBY stake required, but adding more tokens on top of that does not affect its priority.
Furthermore, removing SWINGBY tokens for a metanode to go below the staking threshold resets its seniority to zero. The trade-off is that early adopter nodes are difficult to out-compete as long as they stay honest, potentially discouraging "young" nodes to join as standby. On the upside, it prevents late joiners to gain majority control by abusing a large stack of SWINGBY tokens. Instead, younger nodes becomes encouraged to set up new bridges for tokens in demand to gain seniority as early adopters on that swap pair.
The SWINGBY tokens will also continue to be added for additional use cases that are being incorporated in new SWIPs.
Currently, there are discussions to include use cases, such as:
- Governance asset — SWINGBY holders could submit governance proposals to be implemented by the team by using their tokens to decide the future of Skybridge (and other protocols from Swingby). we launched SWINGBY DAO
- Fee reduction — token holders could receive a swap fee discount by staking/burning tokens.
Full node staking
Participating as a full node ("metanodes") require both dedicated server resources and meeting the SWINGBY token requirement (currently at least 175,000 tokens). Full nodes participate in signing transactions to receive the fees incurred by those transactions. Please remember that nodes are selected based on their age, and removing SWINGBY token stake from the node resets the age to zero.