2.4.6 Tokenomics

By definition, the TEER token has an intrinsic value: users need it to pay for operating in the Integritee network. To ensure that costs are stable and predictable for Integritee users, the usage will be denominated in fiat.

What is the utility of the TEER?

The Integritee parachain will serve as a platform for off-chain computation and sidechains. Using this service will cost fees. Given that the Integritee parachain will be decentralized, this payment has to be made in tokens, hence the need for the TEER token.

Paying fees in tokens with possibly volatile value is not attractive for enterprise clients, who require predictable costs. Therefore, the Integritee parachain usage fees will be denominated in USD. Oracle services will ensure live tracking of the USD/TEER exchange rate in order to maintain stable usage fees. Firms do not only require predictable costs. They also still favor making payments in fiat currency over holding tokens on blockchains, as utility tokens tend to be highly volatile and there are as yet no widely adopted standards for payment interfaces or wallets.

Integritee AG, the company, is determined to guide firms and enterprises to public blockchains and will therefore serve as an optional intermediary (possibly one of many), allowing clients to pay predetermined fees in fiat currency in return for services provided by the decentralized Integritee parachain. Such intermediaries will buy TEER tokens on the open market and pay TEER fees on behalf of their enterprise customers to encourage widespread adoption. As the intermediary service will take on the exchange rate risk of the TEER token, it is expected that paying in TEER directly will be cheaper than contracting an intermediary.

Integritee has an initial hard cap of 10m tokens and only a single native token, the TEER, which can freely float among multiple parachains and ecosystems. A portion is allocated for our early contributors, for the slot auctions to secure parachain slots, for the further development of the network and ecosystem, and long term the treasury, which will be governed by one chain and decentralized by token holders in the future. A burning function burns a fraction of each transaction fee, while the rest is put to the treasury. Emphasizing this point again: each time a user pays for Integritee's service with TEER tokens, a fraction of the TEER token transaction is burned, which implies a strictly deflationary token supply.

Stable Fees

Mechanisms – introduced in our Token Economics – such as the burn rate, the lock drop, and the incentive campaigns aim to ensure Integritee’s sustained access to Polkadot parachains while guaranteeing stable fees for service users and an appreciation of the TEER token.