CDT is the Blox Ecosystem native token. It is an ERC-20 (Ethereum based) token (see smart contract), with a total supply of 1 billion. At present, CDT is used as part of the payment structure of Blox Staking – Non-Custodial Eth2 Staking Platform. In the future, CDT will be incorporated into Blox Decentralized Staking Pools, effectively driving the decentralized Eth2 staking economy.
As part of the payment structure for Blox Staking, users will be charged a yearly fee in ETH when setting up a validator using the decentralized staking platform. The fee will be automatically deposited into a smart contract that converts the ETH to CDT through a Decentralized Exchange (DEX). The CDT will then be burnt, creating deflationary pressure on total token supply. A decrease in CDT supply from burning will, to some extent, offset CDT (2.0) rewards issuance to Block Producers operating the Blox Decentralized Staking Pools.
As the Blox Ecosystem evolves with the advent of Decentralized Staking Pools, the CDT token smart contract will undergo an upgrade, and pool participants that contribute to securing the network (Block Producers) will receive CDT rewards for the correct execution of duties. CDT 2.0 represents the full integration of CDT into the Blox Ecosystem. Same token, new and improved tokenomics.
CDT 2.0 Functions
The development of the Blox Ecosystem introduces new uses for the Blox native token:
Incentivizing Block Producers to Secure the Pools Blockchain
Forming the foundation of Blox Decentralized Staking Pools is the Pools Blockchain. ETH staking actors on the Pools-Chain include Pool Stakers and Block Producers (BPs). CDT is critical for incentivizing BPs, who organize and secure the network and are hence the backbone of the staking pools ecosystem. BPs will be rewarded with newly minted CDT for operating the Pools-Chain in addition to the bETH rewards they receive from the Beacon Chain for staking their ETH.
Vault Staking to Receive bETH Rewards
Any CDT holder will be able to stake CDT in a dedicated CDT Vault on the Pools Blockchain. Vault participants will receive bETH rewards in proportion to their CDT stake. The ETH is derived from the staking service fee for Pool Stakers, who will be deducted a nominal % for their passive participation. HODLing CDT in the Vault creates deflationary pressure on total token supply, offsetting the inflationary pressure caused by the newly minted tokens used as BP rewards.