TWI token

The design of Twilight uses a Burn and Mint structure to balance supply and demand on the Twilight Network, while serving the needs of two main groups of participants:

1. Node Providers, who receive Twilight for processing bandwidth

2. Users, who burn Twilight to consume traffic through Twilight Network

Here's how it works

To access Twilight infrastructure clients need to receive DataPoints. DataPoints are internal currency used for purchasing bandwidth and traffic from the Twilight network. DataPoints are non-transferable and can only be generated by burning Twilight tokens. DataPoints have a fixed USD-pegged price, which ensures the price of bandwidth and traffic will remain stable and predictable for end customers in USD terms.

Twilight must be exchanged for DataPoints to consume Twilight bandwidth. If a client provides their own Twilight token, Twilight Foundation is obliged to return the equivalent amount of DataPoints based on the current exchange rate between Twilight and USD and burn received TWI. However, many data users prefer to pay fiat or SOL/USDC rather than Twilight token. For this reason, the Twilight Foundation plans to accept fiat/SOL/USDC and automatically buy Twilight on the open market at the current exchange rate and burn it to generate an equivalent amount of DataPoints minus a small transaction fee comparable to a credit card processing fee.

Twilight Network distributes DataPoints to Node Providers based on actual traffic it provided while 20% of DataPoints goes to Twilight treasury.

Node providers are able to burn received DataPoints to mint Twilight tokens. Twilight tokens are minted based on the current exchange rate between Twilight and USD.