Tokenomics
The ssv.network utilizes its native SSV token to function as an ETH-accrual token. ETH is used to facilitate payments between stakers and SSV node operators to maintain their validators. Operators maintain validators by reaching a consensus with clusters of other operators to perform network duties on the beacon chain, thereby generating Ethereum staking rewards for stakers.
Operators receive ETH payments and generate ETH rewards for stakers. Stakers pay ETH and receive generated ETH rewards in return.
Operators receive ETH payments and generate ETH rewards for stakers. Stakers pay ETH and receive generated ETH rewards in return.
SSV Network has evolved to include both payment mechanisms and staking utilities, creating a comprehensive economic model that aligns network growth with token holder rewards.
Network Payments
The network uses ETH-based payments for clusters and operators:
- Clusters pay in ETH - Deposit ETH to cover operator and network fees
- Operators earn in ETH - Receive ETH payments for managing validators
- Network fees in ETH - A portion of fees flows to the protocol
Operators receive ETH payments and generate rewards for stakers. Stakers pay ETH and receive generated rewards in return.
SSV token utility
Staked SSV supports the network's oracle infrastructure by providing voting weight for effective balance reporting.
Also, when clusters pay fees in ETH, a portion flows into the SSV Staking contract and is distributed proportionally to all token holders. Learn more in the SSV Staking Guide.
Dual Utility Model
SSV token serves multiple purposes in the ecosystem:
| Utility | Description | Benefit |
|---|---|---|
| Governance | Vote on protocol decisions and treasury allocation | Decentralized control |
| Oracle Support | Staked SSV supports oracle consensus | Network security and accuracy |
| Legacy Payments | SSV tokens still used in legacy clusters | Backward compatibility |
| Staking | Stake SSV to support the network's oracle infrastructure | Provides voting weight for effective balance reporting |
Economic Sustainability
The new economic model creates sustainable, circular value flow:
- More ETH staked → More validators using SSV
- More validators → More ETH fees collected
- More fees → Higher rewards for SSV stakers
- Higher rewards → Increased usability for SSV token
- More SSV staked → Stronger oracle infrastructure
- Stronger network → Attracts more ETH validators
This positive feedback loop ties SSV directly to real network usage and rewards.