What is the utility of the HEMI token?
Hemi has 5 primary token utilities:
- Governance: Locked HEMI converts to veHEMI which grants holders governance voting power over protocol decisions.
- Staking (DPoS): Users stake HEMI to participate in validation and earn staking and block validation rewards via a PoP
- Medium of Payment: Pays network transaction fees, PoP fees from L3 chains, data availability fees to Batchers.
- Access / Feature Unlock: Staking HEMI to obtain veHEMI unlocks governance participation and access to protocol fee-based rewards.
- Collateral: Publishers stake slashable HEMI. Tunnels use HEMI for cross-chain guarantees. Vault validators stake for custody rights.