The DUSK token is the native asset of the
Dusk Network, a layer-1 blockchain specifically engineered for privacy-oriented, regulated financial applications and the tokenization of real-world assets (RWAs). Its primary peculiarity lies in bridging the gap between confidential, zero-knowledge technology and the compliance needs of traditional finance.
Here are the key peculiarities of the DUSK token:
1. "Compliance-First" Privacy (Auditable Confidentiality)
Unlike traditional privacy coins that offer total anonymity, DUSK supports "verifiable, auditable, and compliant privacy". It uses Zero-Knowledge Proofs (specifically PLONK) to allow users to prove they are compliant with regulations (like MiCA or KYC) without revealing sensitive underlying transaction data.
2. Confidential Security Contract Standard (XSC)
DUSK is the native token used to power the XSC (Confidential Security Contract) standard, which enables the issuance, management, and trading of regulated securities on-chain. This allows for the creation of confidential, programmable financial instruments, such as stocks or bonds, while maintaining privacy.
3. Unique "Segregated Byzantine Agreement" (SBA)
The token supports a unique consensus mechanism known as the Segregated Byzantine Agreement (SBA). Unlike traditional Proof-of-Stake (PoS), SBA is designed to be highly secure and efficient, allowing for instant finality—meaning transactions cannot be reversed once they are added to the chain.
4. High-Utility, Non-Inflationary Design
DUSK is the main utility token for the network, used for:
Staking: Participants can stake DUSK to become validators and earn rewards (minimum of 1000 DUSK).
Transaction Fees: Used to pay for network gas, with fees often redistributed to network participants.
On-Chain Governance: Used to participate in network decisions.
Deployment: Paying for the deployment of decentralized applications (dApps).
5. "Soft Slashing" and Staking Benefits
The staking mechanism on the Dusk Network is designed to be user-friendly, offering "soft slashing," which temporarily limits the ability of a misbehaving node to earn rewards rather than immediately burning their staked DUSK. Furthermore, unstaking has no mandatory waiting period or penalties, making it more flexible than many other PoS protocols.
6. The "Zedger" Transaction Model
DUSK is the fuel behind the Zedger transaction model, which is a private-by-default ledger that allows for the confidential transfer of assets.
7. Token Economics and Supply
DUSK has a maximum supply of 1,000,000,000 tokens. The emission model is designed to reward early adopters and stakers, with a 36-year distribution schedule that follows a "geometrical decay" model (similar to Bitcoin's halving) to control inflation.
In summary, DUSK is not just a speculative asset, but a functional tool designed for institutional-level, compliant, and private finance.
