Synnq Tokenomics

Synnq operates a next-generation blockchain architecture that combines neural networks (NN) and federated learning with a Directed Acyclic Graph (DAG) structure. The native token, SYQ, fuels this innovative ecosystem, offering dynamic transaction management, scalability, and decentralized governance. Below is an updated breakdown of Synnq's tokenomics:

1. SYQ Token

SYQ is the native cryptocurrency of the Synnq DLT, and it supports several key functions across the network:

• Transaction Fees: SYQ is used for transaction execution. The transaction fee model is dynamic, but the system is designed to maintain near-zero fees as part of its efficiency mechanism, benefiting users by reducing costs.

• Fixed Deposit Earnings: Users can deposit SYQ tokens to earn rewards. This staking system is not based on Proof-of-Stake (PoS); instead, rewards are earned through a fixed-deposit logic, where returns are distributed based on the deposit period and amount.

• Federated Learning Rewards: Federated learning participants earn a percentage of transaction fees for contributing to decentralized model training, ensuring data privacy and network security.

2. Supply and Distribution

The total supply of SYQ tokens is 10 billion, with careful allocation for long-term sustainability and network development:

• Treasury: A portion of SYQ tokens is reserved for ecosystem growth, future development, and strategic initiatives.

• Deposit Rewards: Tokens are allocated for rewarding users participating in the fixed-deposit earning mechanism.

• Ecosystem Growth: A substantial portion of SYQ is allocated to incentivize developers, dApp creators, and partners, ensuring continuous network growth and innovation.

3. Transaction Fees and Usage

SYQ tokens are essential for several functions within the Synnq network:

• Transaction Fees: SYQ is used for transactions within the ecosystem. Although fees are dynamic, the system strives to keep transaction costs near zero.

• Smart Contract Execution: SYQ facilitates the execution of smart contracts and the interaction with decentralized applications (dApps).

• Decentralized Storage: SYQ tokens are used to pay for decentralized data storage services.

4. Staking and Fixed Deposit Rewards

Synnq offers a fixed-deposit-based earning system where users deposit SYQ tokens for a fixed period. In return, they receive earnings based on the length of the deposit period and the amount deposited. This mechanism is distinct from traditional Proof-of-Stake (PoS) and is designed to provide consistent rewards without tying consensus mechanisms to staking.

5. Governance and Reputation-Based Voting

Governance on the Synnq platform is managed through a reputation-based voting system, where nodes gain voting power based on their reputation points rather than the amount of SYQ held. Reputation points are awarded based on contributions to the network, such as participating in decentralized training, verifying transactions, and maintaining network integrity.

6. Supply Release and Vesting

The release of SYQ tokens follows a controlled vesting schedule to ensure long-term stability and avoid market disruptions. Token allocations are gradually unlocked to support sustained network growth and reward participants in line with the project's strategic milestones.

7. Neural Networks, Federated Learning, and DAG Synergy

The Synnq network employs federated learning where participants contribute to decentralized model training. Nodes earn rewards by training models on local data and updating the global neural network model without sharing raw data. A portion of the transaction fees generated on the network is distributed to participants in federated learning.

The DAG structure further enhances network scalability and efficiency by allowing multiple transactions to be processed in parallel, significantly reducing latency and improving overall transaction speed.

Summary of SYQ Token Use Cases:

• Transaction Fees: Dynamic transaction fees with a target of near-zero costs.
• Fixed Deposit Earnings: Earn rewards based on SYQ deposits for fixed periods.
• Governance: Managed by reputation points, not SYQ tokens.
• Federated Learning Rewards: Earn a percentage of transaction fees for contributing to decentralized model training.
• Smart Contract Execution and Storage: Use SYQ to execute contracts and store data.

Synnq's tokenomics are designed to support a decentralized, efficient, and secure ecosystem. By integrating neural networks, federated learning, and DAG technology, the platform ensures scalable performance, minimal transaction fees, and a governance model driven by reputation rather than wealth.