$Tokenomics
Introduction
The $BANC token is the native asset that powers the Banc Protocol ecosystem. It functions simultaneously as:
Utility Token: used to pay for transactions, proof generation, and compliance verification.
Governance Token: grants voting rights and proposal privileges in Banc DAO.
Incentive Token: rewards nodes, validators, and contributors for maintaining network integrity.
Compliance Fuel: drives Banc’s unique “proof-based burn” mechanism that ensures economic deflation as network usage grows.
In Banc, the economic system is not just a reward mechanism — it is an enforcement tool that ensures the long-term alignment between privacy, regulation, and decentralization.
Token Overview
Token Name
Banc Protocol Token
Ticker
$BANC
Standard
BEP-20 (Binance Chain)
Total Supply
1,000,000,000 (1 billion)
$BANC Allocation (Tentative)
Ecosystem & Community
45%
User incentives, liquidity programs, and developer grants.
Team & Advisors
20%
Four-year linear vesting; locked for one year post-launch.
Validators & Nodes
15%
Initial staking supply and node rewards.
Investors & Partners
10%
Strategic partners, regulated funds, and RWA integrations.
Treasury Reserve
10%
Long-term ecosystem and compliance partnerships.
Vesting Schedule
Team & Advisors: 12-month cliff, then linear vesting over 48 months.
Investors: 6-month cliff, linear vesting over 24 months.
Validator & Node Supply: unlocked progressively based on staking milestones.
Community Grants: distributed quarterly via DAO votes.
Core Utilities
1. Compliance Fuel
Every transaction on Banc that requires a ZKP or TEE validation consumes a small amount of $BANC as Compliance Fuel. This is similar to gas, but it powers proof computation and regulatory verification instead of generic execution.
Asset Issuance
High
One-time proof generation and verification.
Asset Transfer
Medium
ZKP for transfer + policy checks.
Vault Operation
Medium
Private vault transfer or redemption.
Compliance Verification
Low
Jurisdiction module execution.
Regulator Queries
Very Low
Proof validation requests.
Part of each compliance fee is burned permanently, creating a natural deflationary effect tied to real usage.
2. Network Security & Staking
All validator, audit, and compliance nodes stake $BANC to operate. Staking provides:
Network security.
Economic skin-in-the-game for node honesty.
Yield from transaction fees and compliance rewards.
3. Governance
$BANC serves as the key governance token for Banc DAO. Holders can:
Submit proposals.
Vote on upgrades, module approvals, or treasury allocations.
Delegate governance rights.
Co-sign compliance policy updates.
Governance voting weight = 1 token per vote (for technical votes) or √token (for quadratic community proposals).
4. Incentives
$BANC is distributed as incentives to entities that strengthen the protocol:
Validators
Proof verification rewards
Transaction fees
Compliance Nodes
Module execution fees
Compliance Pool
Audit Nodes
Audit hash validation
Proof verification pool
Regulator Nodes
Jurisdiction updates
Treasury grants
Developers
Grants and bounties
DAO Treasury
Users
Engagement & community events
Banc Vault rewards
The value of $BANC is intrinsically tied to protocol adoption.
More RWA Assets Tokenized
Higher demand for proof generation.
Increased Vault Usage
More compliance fuel burned.
More Jurisdiction Modules
More fees processed.
Expanded Institutional Partnerships
More staking and validator participation.
Compliance Fuel Model
Banc introduces a unique model called Compliance-as-Fuel, which ties token demand directly to protocol usage.
How It Works
Every proof, transaction, or compliance check burns a portion of $BANC.
The burn rate is proportional to the computational cost (ZKP + TEE workload).
The remaining tokens are distributed as rewards to active nodes.
The burn mechanism ensures that network utility = deflation.
Illustrative Example
ZKP Proof Generation
$BANC
20%
80% to validators
Compliance Verification
$BANC
10%
90% to compliance pool
Audit Hash Registration
$BANC
5%
95% to auditors
As Banc’s usage grows, $BANC supply declines while node participation becomes more valuable.
Economic Participants
Validators
Verify transactions and proofs.
Earn verification fees and staking yield.
Compliance Nodes
Enforce jurisdictional modules.
Earn compliance pool distributions.
Audit Nodes
Confirm AuditHashes and compliance proofs.
Earn audit rewards and recognition.
Regulator Nodes
Maintain jurisdiction rules.
Receive DAO Treasury funding.
DAO Treasury
Manages long-term allocations.
Collects protocol fees and redistributes funds.
Users
Use Banc products (Vault, Smart Assets).
Pay compliance fuel; receive incentives for participation.
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