Checks Whitepaper
  • Cover
    • Checks Whitepaper
  • Overview
    • Introduction
  • Abstract
  • The Problem & Solution
  • MVP Features
    • Introduction to MVP
  • Standard Payment
  • Vesting Schedule
  • Platform Yield
  • Examples
  • Check Minting
  • Portfolio Management
  • NFT CHECKS
    • Design Overview
  • Check Types
  • Platform Structure
    • Tier System
  • Multi-Chain Support
  • Post-MVP Features
    • Introduction to Post-MVP
  • Escrow
  • Auto-Investment
  • Checks DAO
  • Checks Launchpad
  • P2P Lending
  • Paymart Integration
  • Token Economics
    • Check Token Utility
  • Check Token Tokenomics
  • Technical Documentation
    • Smart Contract Design & Security
  • Technical Deep Dive
  • Revenue Model
  • Appendix
    • Conclusion
  • References
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On this page
  • Governance
  • Staking and Rewards
  • Fee Payment & Discounts
  • Deflationary Mechanisms
  • Ecosystem Utility
  1. Token Economics

Check Token Utility

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Last updated 21 days ago

The is the utility and governance token at the heart of the Checks Platform. It is implemented on Polygon for fast and low-cost transactions, and serves several key functions in the ecosystem.

Governance

CHECK token holders can govern the platform, voting on proposals such as:

  • Protocol upgrades

  • Fee parameters

  • Adding new features and supported chains

  • Strategic initiatives

Decentralized governance ensures the platform evolves with stakeholder consensus, similar to how AAVE or Compound token holders guide those protocols.

CHECK may also be used in on-chain polls to select new yield strategies or approve audited strategy modules before they're added, aligning community interest with platform direction.

Staking and Rewards

Users are incentivized to stake CHECK tokens by minting Yield Checks, earning a generous share of platform fees and revenue generated by the platform.

Rewards are distributed in major currencies, such as:

  • Stablecoins (USDC, USDT, DAI)

  • Blue-chip assets (ETH, POL, BNB)

The distribution depends on platform activity and revenue sources. This model, similar to liquidity mining, encourages long-term staking, fostering user commitment while enhancing the platform's security and sustainable growth.

Fee Payment & Discounts

The platform applies fees for utilizing its services. By default, these fees are paid either in:

  • The collateral of the locked token (e.g., USDT, SAFE, CRO, etc.)

  • The native currency of the network (e.g., ETH, POL, BNB, etc.)

Additionally, users may be permitted to pay fees using CHECK tokens, which could come with exclusive benefits such as discounts or rebates, further incentivizing their use and boosting demand for the token.

Moreover, the protocol may collect fees in various assets and periodically utilize them to buy back CHECK tokens on the market, creating sustained buy pressure. This approach ensures that the native token remains deeply embedded within the platform's economic framework, reinforcing its utility and value across the ecosystem.

Deflationary Mechanisms

The platform incorporates multiple deflationary strategies to increase the value and scarcity of its native CHECK token:

  1. Fee Allocation: A portion of the fees and revenues generated by the platform are allocated to token buybacks and burns, gradually reducing the circulating supply.

  2. Burn Fee: A 0.05% burn fee is applied when minting Yield Checks. Unlike other fees, this burn fee is not collected by the platform or distributed to holders; it is entirely burned, permanently removing CHECK tokens from circulation.

By combining these approaches, the platform employs a powerful hyper-burn model that ensures CHECK becomes increasingly scarce and valuable as usage grows. This deflationary design directly ties the platform's success to its token holders, as every Yield Check minted, or transaction conducted results in more CHECK being burned, benefiting holders through rapid supply reduction.

Ecosystem Utility

The CHECK token is more than just a governance and rewards mechanism—it serves as a gateway to premium features and deeper ecosystem participation:

  • Volume Requirements: Projects or companies aiming to create large volumes of Vesting Checks or Escrow Checks may be required to hold or stake a certain amount of CHECK, fostering commitment and reducing spam.

  • Collateral for Roles: CHECK can act as a bond or collateral for specific roles, such as serving as an arbitrator in disputes or operating an oracle node within the ecosystem.

  • Unified Gas Token: In future cross-chain deployments, CHECK could function as a unified gas token or fee unit for transactions, streamlining operations by eliminating the need for users to hold native gas tokens across multiple networks.

Ultimately, CHECK is designed as the central governance and value-capture asset that connects all participants—users, developers, and investors—within the Checks Platform.

Check Token (CHECK)