Edge Network operates with two primary tokens: $XE (native to the XE Blockchain) and $EDGE (an ERC-20 utility token). This guide explores their functions, interoperability, and economic mechanisms that maintain a balanced ecosystem.
Core Features of Edge Network Tokens
$XE: The Native Network Coin
- Layer-1 Solution: Powers fast transactions with resource-based mapping
- 1:1 Bridging: Convertible to $EDGE on Ethereum via Edge Bridge
- Zero Transaction Fees: Current internal network transfers incur no cost (governance proposals may introduce minimal security fees)
👉 Discover how Edge Bridge enhances cross-chain interoperability
$EDGE: The Gateway Utility Token
- ERC-20 Standard: Tradable on Ethereum networks
- Ecosystem Access: Primary means to purchase Edge services
- Supply Reduction Mechanism: Bridging locks tokens, reducing circulating supply
Token Utility Breakdown
| Function | $XE Usage | $EDGE Usage |
|---|---|---|
| Service Purchases | Direct payment method | Auto-converted via bridge |
| Network Staking | Required for node operation | Converts to $XE when staked |
| Governance | Stake-weighted voting rights | Converts to $XE when governed |
| Value Capture | 75% revenue burn mechanism | Locked when bridged to $XE |
Economic Mechanisms
Supply Control Features
Burning Protocol
- 75% of network revenue sent to zero address monthly
- Bad actor stakes are burned as penalties
Buyback Program
Fiat/crypto revenues allocated to:
- Development Fund (25%)
- Growth Fund (25%)
Bridge Fees
- 0.75% transaction fee for cross-chain transfers
- Fees collected in dedicated $XE vault
Liquidity Infrastructure
- Uniswap Pool: Community-supported $EDGE liquidity
Fee Distribution:
- 0.3% per Uniswap trade to liquidity reserves
- Pro-rata rewards for liquidity providers
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Governance and Transparency
- On-Chain Monitoring: Real-time tracking via network explorer
Public API Endpoints:
/supply/circulating- Current circulating supply/supply/maximum- Total possible supply/supply/burned- Permanently removed tokens
Frequently Asked Questions
Q: How does the 1:1 bridging between $EDGE and $XE work?
A: When you bridge $EDGE to Edge Network, tokens lock in Ethereum smart contracts while minting equivalent $XE. Reverse bridging burns $XE to release $EDGE.
Q: What happens to transaction fees?
A: Current internal transactions are free. Proposed security fees would be burned. Bridge fees (0.75%) fund network maintenance.
Q: Can I participate in governance without running a node?
A: Yes - you can stake $XE specifically for governance without node operation through dedicated staking contracts.
Q: How often are tokens burned?
A: Revenue burns occur monthly, while penalty burns happen immediately when bad actors are identified.
Q: Where can I view real-time tokenomics data?
A: The network explorer provides live updates, and the public API offers programmatic access to key metrics.
Q: What's the advantage of purchasing services with $EDGE?
A: Automatic bridging converts your $EDGE to $XE while reducing overall $EDGE supply, potentially increasing scarcity over time.