What Is SWELL Network (SWELL)? A Complete Guide to the Token and Its Ecosystem

Bittime - What is swell network (swell)? a complete guide to the token and its ecosystem. SWELL is the native governance token of Swell DAO, a decentralized community responsible for the development, growth, and maintenance of the Swell protocol. 

The Swell Protocol is a leading Layer 2 solution in restaking for the Ethereum and Bitcoin networks, providing a native liquid staking and restaking mechanism. 

These tokens serve not only for governance, but also to secure Swell’s infrastructure and applications through restaking protocols such as EigenLayer and Symbiotic.

Also read: Swell Network Airdrop: Eligibility and Profit Potential

SWELL Token Main Functions: Governance, Restaking, and Gas Fees

The SWELL token plays a vital role in supporting the Swell ecosystem, used for governance via the Swell DAO, network security via restaking, and also as a gas token on Swell's Layer 2. Here are the three main functions of SWELL:

1. Governance

SWELL holders can propose and vote on important decisions that impact the Swell DAO. 

This includes protocol upgrades, liquidity incentives, and fund allocation to various projects within the Swell ecosystem.

2. Restaking and Rewards

SWELL also allows users to restake, earning rSWELL tokens that can be used to earn additional rewards from other DeFi protocols. 

rSWELL brings governance power on par with SWELL, strengthening user engagement across the network.

3. Gas Costs

SWELL serves as a gas token on Layer 2 Swell, enabling more efficient transactions and lower fees, making the network attractive to users and developers.

Also read Swell Network Airdrop: Tutorial How to Get Pearls

SWELL Token Supply and Distribution

With a total supply of 10 billion tokens, SWELL distribution has been designed to ensure decentralization, community engagement, and sustainability of the protocol:

Airdrop Voyage (8,5%)

A total of 700 million SWELL will be distributed to active stakers who have accumulated White Pearls. An additional 1.5% is allocated as a loyalty bonus to loyal community members who have participated since the beginning. Claiming these tokens is available for up to six months after launch.

Vesting for Large Holders (0.3%)

The top 0.3% of White Pearls holders, namely those who own more than 208,997 White Pearls, will follow a vesting schedule to maintain market stability.

Community and Ecosystem Distribution (35%)

35% of the total SWELL supply is allocated to the Swell community and ecosystem as part of the DAO’s commitment to decentralization and community ownership. Through this initiative, Swell seeks to create a more fair and inclusive protocol for all users.

Voyage campaign

The Voyage campaign provides an allocation of 8.5% (or 850 million SWELL) to early stakers and liquidity providers, supporting growth and early adoption.

Wavedrop campaign

This campaign is designed to distribute an additional 7% of tokens to the community within 12 months following the Token Generation Event (TGE), expanding Swell's user base.

Pool Launch

A total of 135.53 million SWELL was allocated for pool launch and marketing to support distribution on crypto exchanges.

Also read: SWELL Airdrop Claim Today, How Much is the Allocation? Check it out here!

Anti-Sybil Swell

To protect the integrity of the airdrop and prevent abuse, Swell has implemented an anti-sybil system. Sybil is an illegitimate practice where a single entity creates multiple identities to acquire more tokens. 

The Swell team has been working with anti-sybil data providers to identify suspicious patterns, ensuring airdrops are only received by legitimate users.

Swell DAO Roadmap Update

Swell DAO is progressing through a structured three-phase Roadmap to achieve complete on-chain governance and decentralization. Here is a brief overview of each phase:

Phase 0.1 - Building the Foundation

- Drive ecosystem growth through key incentives and partnerships.

- Launch community engagement and education efforts.

- Bringing Actively Validated Services (AVS) on board through thorough research and selection.

Phase 1 - Building Governance Infrastructure

- Recruit and coordinate contributors within the DAO.

- Building partnerships and managing the onboarding process for node operators.

- Setting strategic direction for protocol partnerships and growth.

- Manage Swell's treasury, allocating funds for operations, research, and grants.

- Collect service fees to support insurance pools and development projects.

Phase 2 - Full Decentralization

- Develop and optimize smart contracts and protocol setup.

- Implement supporting technologies for on-chain governance and sustainability.

- Equip DAO to manage protocol evolution independently.

Conclusion

SWELL is a key token in the Swell ecosystem that serves as a governance, gas, and restaking token on Layer 2 of the Ethereum and Bitcoin networks. 

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