Overview of the Areon Chain and the AREA token.
On January 11 at 16:53 UTC, 2024, the AreonChain Testnet was deployed and the first block of the AreonChain was created by the AreonChain validators. The AreonChain is a proof-of-Area blockchain network built using the Tendermint and leveraging CometBFT for consensus. The Areon community, through Areon governance, voted (Snapshot and on-chain) in favor of adopting Areon as the Layer 1 token of the AreonChain for staking to validators in order to secure the chain and for stakers of the L1 token to govern the network. The utility of the AreonChain’s coin, AREA , is apparent in three areas: Staking, Security and Governance.
- Staking: AREA holders have the option to serve as validators (and self-delegate) or to delegate their stake to existing validators. Such delegation increases the likelihood of the chosen validators entering or staying in the active validator set, thereby becoming a participant in the network’s consensus process.
- Security: Staking AREA directly contributes to AreonChain security. As more AREA holders choose to stake their tokens across a diverse range of validators in the network and the total amount of stake on the network increases, it becomes increasingly difficult for a coordinated attack to influence a consensus decision.
- Governance: AREA empowers AREA holders to propose and vote on proposals, directly influencing the evolution of the AreonChain through a democratic process. The subject matter of proposals can vary from changing a governable parameter on the AreonChain, spending AREA community funds, and updating the software that AreonChain nodes are running, among other things.