Tokenomics
SGC token design, distribution, utility, and the fee structure that sustains the protocol.
Tokenomics
5.1 SunGrid Credits (SGC)
SGC is a fixed-supply utility token with a total supply of 1,000,000,000 (1 billion) tokens. It is not a security, not a yield instrument, and not an investment contract. Its value is derived from utility demand within the SunGrid network.
5.1.1 Token Functions
| Function | Description |
|---|---|
| Validator staking | Oracle node operators stake SGC as collateral. Honest behavior is rewarded; dishonest behavior is slashed. |
| Fee discounts | Users holding SGC receive reduced transaction fees. The more SGC locked, the lower the fee (0%–0.5% base rate). |
| Governance | SGC holders vote on new grid integrations, fee structure changes, oracle provider approvals, and carbon credit standards. |
| Energy credit redemption | SGC can be converted to Energy Tokens at a fixed rate, creating a price floor tied to energy value. |
5.1.2 What SGC Does NOT Do
- Does not pay dividends or revenue shares (would constitute a security).
- Does not guarantee returns.
- Does not inflate to pay stakers (supply is fixed).
- Does not promise price appreciation.
5.2 Token Distribution
| Allocation | Amount | Vesting | Recipient |
|---|---|---|---|
| Energy Infrastructure Partners | 30% (300M) | 4 years, 1-year cliff | Grid operators, utilities, energy producers who integrate |
| Team & Advisors | 20% (200M) | 4 years, 1-year cliff | Core development team |
| Ecosystem Fund | 20% (200M) | 3 years, no cliff | Grants for developers building on SunGrid |
| Community & Airdrop | 15% (150M) | Immediate (with 6-month lock) | Early users, energy producers, testnet participants |
| Treasury Reserve | 10% (100M) | DAO-controlled | Insurance fund, emergency reserves |
| Public Sale | 5% (50M) | Immediate | Initial liquidity |
No venture capital allocation. SunGrid is funded by energy industry strategic investors.
5.3 Fee Structure
| Service | Fee | Recipient |
|---|---|---|
| ET transaction | 0.1% of token value | 70% insurance fund, 30% SGC stakers |
| Auto-compound (storage) | 0.05% | SGC stakers |
| REC certification | $0.50 per certificate | Protocol treasury |
| Grid balancing (SaaS) | Contract-based | Protocol treasury |
| Data & analytics | Subscription | Protocol treasury |
5.4 Energy Token (ET) Economics
- Supply: Elastic. Minted on generation, burned on consumption. No fixed supply.
- Price: Determined by real-time energy market supply and demand. Typical range: $0.05–$0.20 per kWh depending on grid, time, and demand.
- Backing: Each ET represents 1 kWh of verified renewable energy. The token is a claim on energy, not a speculative asset.
5.5 Value Accrual to SGC
SGC value accrues through utility demand, not revenue sharing:
- Validator demand: Oracle node operators must stake SGC to participate. As the network grows, demand for SGC increases.
- Fee discount demand: Users lock SGC to reduce transaction fees. Higher network usage → more SGC locked → reduced circulating supply.
- Governance demand: Participants in new grid integrations must hold SGC to vote.
- Energy redemption demand: SGC can be converted to ET at a fixed rate, creating a price floor.
This design ensures SGC value is tied to network usage, not token speculation or revenue promises.