Token Utility
Five independent utility functions: witness rewards, governance, buyback, LP rewards, and exchange pairs
SBT has five utility functions on SB Chain at genesis, each independent of the others so that no single use dominates.
Witness Block Rewards
Every block produced on SB Chain earns the producing witness a reward denominated in SBT. Blocks are produced every 5 seconds by 21 randomly selected witnesses. Rewards incentivise the operation of high-reliability, always-online witness nodes, funding the decentralised infrastructure of the chain without any centralised payments mechanism. Witness rewards vest over 90 days per payment, discouraging short-term participation.
On-Chain Governance
SBT holders vote for witnesses (who produce blocks), committee members (who govern network parameters), and worker proposals (funded development initiatives). Voting power is proportional to SBT holdings. Every governance action (vote cast, proposal submitted, parameter changed) is permanently recorded on the immutable ledger. SBT holders collectively control the protocol's fee schedules, block size limits, bridge parameters, and long-term development direction.
Fee Buyback and Burn
The protocol includes an on-chain buyback-and-burn mechanism governed by a parameter (burn_fee_percent) that exists at genesis and is set to zero. It is activated by governance vote when daily trading volume crosses $1M, the point at which the mechanism has meaningful economic scale. Before that threshold, deploying fee revenue into burn would have negligible supply impact while depriving the protocol of capital needed for liquidity seeding and audits. The activation is announced publicly as a milestone: the $1M volume number becomes a tokenomics event.
Fee revenue follows a three-phase schedule tied to daily volume milestones. Capital is directed where it has the most impact at each stage of protocol maturity.
| Phase | Daily Volume | Treasury | SBT LP Rewards | Burn |
|---|---|---|---|---|
| Phase 1 | < $1M | 100% | 0% | 0% |
| Phase 2 | $1M – $10M | 60% | 30% | 10% |
| Phase 3 | $10M+ | 30% | 40% | 30% |
At Phase 3 trigger ($10M daily volume), burn at 30% represents ~$2.19M/year in SBT purchased and permanently removed from circulation. LP reward purchases at 40% add a further ~$2.92M/year in buy pressure on SBT from real protocol earnings.
LP SBT Rewards
From the 17.5% LP rewards allocation, SBT is distributed to liquidity providers in proportion to their LP share on a declining schedule. This creates a continuous SBT yield stream for LPs that supplements the direct pool fee revenue they earn natively from trading activity.
Exchange Pairs
SBT/wETH, SBT/wUSDT, SBT/wBTC, and SBT/wSOL pools provide price discovery for SBT and serve as natural entry and exit points for bridge participants. These pools launch at genesis alongside the order book DEX and become the deepest SBT liquidity venues on the network.
Zero gas fees. Operation fees for all user-facing actions (swaps, bridge deposits and withdrawals, LP deposits, LP withdrawals, and governance votes) are set to zero at genesis. SBT's value accrues through protocol ownership and revenue distribution, not through mandatory transaction friction.