Introduction
TENET is the native token of Tenet protocol.
It is used at the base layer of the blockchain to pay for transaction execution as gas token. You need TENET to use the Tenet network.
TENET can also be staked in a Validator to secure the blockchain through Tenet's revolutionary DiPoS-mechanism. When you stake TENET to a validator, you will receive an LSD ('Liquid Staking Derivative') of TENET called tTENET.
tTENET itself needs to be staked to receive block rewards from securing the blockchain.
LSD's are a cornerstone of the Tenet Network. Tenet allows major LSDs from other blockchains to also be used as Validator collateral for Tenet. By issuing a new validator specific tLSD each time a new LSD is staked to a Validator, Tenet allows the user to re-use existing liquidity on Tenet DeFi protocols.
tTENET, the LSD of TENET that represents TENET that is being used in network validation, has further utility within the Tenet DeFi ecosystem.
TENET employs a tokenomic model inspired by a class of tokenomic primitives called veTokenomics. TENET can be locked to produce veTENET.
veTENET stands for vote-escrowed TENET. This simply means TENET is locked for a period of time. The longer you lock TENET for, the more veTENET you receive.
The main purpose of Tenet's veTokenomic model is to incentivise users in the Tenet DeFi ecosystem as well as getting as many users involved as possible in the governance of this ecosystem. Tenet applies the veTokenomic model at the base layer of the blockchain and uses its strengths to incentivise a diverse DeFi landscape.