Tokenomics

Two assets. Clean separation.

DIG keeps custody and utility cleanly separated: XCH is the staking collateral on Chia L1, and DIG is the L2-native reward, fee, and storage-payment asset.

Pre-mainnet. DIG Network has not launched. Every parameter on this page — collateral, emission, fees, and allocation — is design intent and subject to change between now and mainnet.
XCH
The staking asset · Chia L1
collateral
  • Validators lock XCH into a registration_coin on Chia L1 — the coin's existence is the stake.
  • Staked XCH is removed from circulating supply for the validator's life — a demand sink that scales with the validator set.
  • On exit, unslashed XCH returns to the operator after the withdrawal delay (attested by Groth16 + BLS).
  • Target collateral at launch: ~$5,000 USD-equivalent per validator; governance adjusts as the network scales. (subject to change between now and mainnet)
DIG
Reward · fees · storage payment
L2-native
  • The consensus reward — paid every block as a subsidy to the proposer and attesters.
  • The L2 fee asset — transaction fees split 50% to validators, 50% burned.
  • The payment asset for DFSP storage — clients pay DIG for capacity, retrieval, and namespace operations.
  • Storage nodes stake DIG (independent of consensus stake) into a per-node singleton.
How DIG flows

Issuance in, demand out

Supply

Earned by validating

DIG is minted as a per-block validator subsidy on a Chia-style halving curve toward a non-zero floor — the genesis state holds zero DIG; the first DIG is minted by the first block.

Sink

Half of every fee is burned

L2 transaction fees split 50% to validators and 50% burned, tying network usage directly to supply reduction.

Demand

Storage pays in DIG

Clients spend DIG to store, retrieve, and name data on DFSP. This is the demand side that balances validator issuance.

Security

Two independent stakes

Validators stake XCH for consensus; DFSP storage nodes stake DIG for availability. An operator running both satisfies each separately.

At a glance

The numbers

1 DIG = 10⁹
dojos — the smallest unit, like the mojo is to Chia's XCH
~$5,000
USD-equivalent XCH collateral per validator at launch
20,000
MAX_SIGNERS — the validator set is bounded at scale
50 / 50
of every L2 fee: half to validators, half burned
Not a governance token. DIG voting weight is zero — governance is validator-set membership, not token holdings. DIG's value comes from its role as the reward, fee, and storage-payment asset of the network.
XCH demand sink

How much XCH locks up at scale

Every validator removes its collateral from circulating XCH for its operating life. As the validator set grows toward the 20,000 cap, the locked total scales with it — a structural demand sink on XCH (at the ~$5,000 launch target, design intent):

~$5M
at 1,000 validators
~$50M
at 10,000 validators
~$100M
at the 20,000-validator cap (fully realized participation)

Illustrative — scales with collateral_amount and XCH price; governance adjusts the target. Subject to change before mainnet.

Read the whitepapers