How it Works
Audius platform tokens (AUDIO) have three prongs of functionality within the Audius protocol ecosystem:
- Feature Access
AUDIO is staked as collateral for a value-added service such as operating a node or participating in governance. In exchange, stakers earn ongoing issuance, governance weight, and access to exclusive features. In the future, AUDIO will govern a global fee pool from value transfers in the network.Offering a native token to align all actors creates a parallel incentive unique to web3, and one which allows our early adopters to share in the upside of Audius as we continue to grow.The Audius community looks to ensure that AUDIO tokens are always being funneled to the most value-added actors. This is done through ongoing issuance using onchain metrics as a measurement to better route distribution to active participants, rather than simply to those staking the most AUDIO.Here’s how this pans out in practice.
AUDIO is staked by node operators to secure the network. The larger the stake, the higher the probability of their node being used by fans and artists. Audius is entirely hosted and operated by the community, creating a permissionless ecosystem of node operators securing content for the world’s unstoppable streaming protocol.
AUDIO serves as collateral to unlock additional artist tooling. Early examples incubated by the community include artists tokens, badges, and earnings multipliers. In the future, fans may delegate AUDIO to specific artists and curators to share in their growth on the platform.
Any AUDIO staked within Audius is assigned governance weight, used to shape future iterations of the protocol. Every aspect of Audius is governable, starting with one token staked equal to one vote. We envision governance to focus on operator incentives at inception, with the ambition for even passive fans to voice their opinion over product updates and feature upgrades too.The choice to offer ongoing issuance aligns power with those who are continually the most active on the platform, a mechanism Audius believes better suits future users of the protocol.