Why do we have a native token?
The Crunch Token is the native token of the Crunch Network. Holders can vote on ideas and policies to influence the network's governance. Additionally, it is used as a reward for lenders and borrowers who use the platform.
When a user supplies assets to the Crunch protocol, they receive cTokens in return, which represent their share of the pool.
These cTokens can be redeemed for their underlying asset plus interest at any time. The interest earned is denominated in cTokens, which can be used to pay transaction fees or traded on exchanges.
The Crunch Token also plays a crucial role in the governance of the network. Holders can propose and vote on changes to the protocol, such as listing new tokens or updating interest rate models.
This allows for a decentralized decision-making process that is controlled by the community rather than a central authority.
Overall, the Crunch Token serves as an incentive mechanism for users to participate in and contribute to the growth of the network, while also providing them with a say in its future direction.