KYVE’s native token, $KYVE, is an essential part of the blockchain. On a chain level, $KYVE is used for staking and delegating, securing the network through Proof of Stake. Furthermore, $KYVE is used on the protocol level for funding, staking, and delegating, incentivizing participants to behave accordingly.
With $KYVE, users can participate in the Governance of the blockchain, voting for which pools can be created, controlling the treasury and how the treasured $KYVE is used, bringing forward new proposals for improving the protocol, and more.
A storage pool requires funding in $KYVE and can be provided by anyone. The funding gets paid out to the protocol nodes active in the pool, and also is what allows users to access the data. If a pool runs out of funds, it stops. This is a crucial part of KYVE’s token economics.
A storage pool requires protocol nodes that upload and validate data. To ensure that nodes upload correct data and validate honestly, the protocol nodes have to stake $KYVE. Nodes are rewarded with $KYVE based on their staking amount.
By delegating to a node, you help to secure the network. Delegation is a form of staking which does not require you to run your own node. Delegation in support of protocol nodes also allows users to generate rewards. At KYVE, you can delegate to both protocol and chain nodes, allowing you to have multiple ways of earning rewards for your tokens.