Tokenomics

The protocol utility token is designed to secure the VectorX402 network and align incentives between data providers, consumers, and node operators.

1. Quality Staking (Publisher Bond)

Publishers must stake tokens to list data. This creates a cost for spamming the network with low-quality or random vectors. The more data an agent publishes, the more tokens they must lock.

2. Indexing Rewards (Node Incentive)

Semantic Search Nodes run the computationally expensive vector search algorithms (like HNSW or FAISS). They are rewarded in tokens for every query they successfully route to a transaction. This incentivizes the maintenance of a fast, distributed index.

3. Curator Incentives

Early adopters who identify and verify high-demand datasets receive a portion of the protocol fees in tokens. This "Curator Proof" mechanism encourages the discovery of valuable information gaps in the marketplace.

4. Governance

Token holders vote on critical protocol parameters, such as the slashing threshold, supported embedding models, and protocol fee rates.