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Constellation Disrupts Blockchain With Revolutionary Tokenomics

Constellation Disrupts Blockchain With Revolutionary Tokenomics

Have you ever wondered what’s the next big thing in blockchain? Could there be more beyond Bitcoin and Ethereum? If you have asked yourself these questions, fear not, the next big thing is finally here. Constellation Network introduces a refreshing new take to blockchain functionality and tokenomics. In particular, Constellation offers a unique protocol and tokenomics that could revolutionize blockchain as we know and understand it. Read on to learn more about Constellation Network, its HGTP protocol, $DAG, and what makes this blockchain so unique. 

What is Constellation Network?

Constellation is a decentralized network and ecosystem that aims to enable seamless and secure communication between big data systems. In addition, the blockchain aims to create cross-chain connections and blockchain interoperability. Constellation utilizes a distribution network called Hypergraph which enables fast, cost-effective, trustless, and scalable enterprise solutions. The network’s Hypergraph Transfer Protocol

(HGTP) is the first blockchain Layer-0 distributed ledger architecture. HGTP is based on a Directed Acyclic Graph (DAG).

What makes Constellation’s framework is that most blockchains like BTC, ETH, DOT, or ADA are Layer 1 networks. However, Constellation is the first Layer-0 network. To clarify, Layer-0 protocol is the layer beneath all other protocols. As such, a Layer-0 protocol can connect all Layer-1 protocols enabling unprecedented cross-chain interoperability.

In addition, Layer-0 protocol enables Constellation users to develop unique applications like state channels and minting their own cryptocurrencies. Of note, state channels are a more secure and complex alternative to smart contracts. Also, Constellation improves data integrity by bridging the gap between decentralized ecosystems and the real-world data problems faced by enterprises and governments.

How the Constellation Network Works

Constellation network consists of a series of state channels that validate data based on user-defined functions. In this way, state channels create a distribution network that can support real-world big data use. Notably, Constellation can easily integrate with any existing system, thus developers can easily add state channels to their systems.

Proof of Reputable Observation

Constellation introduces an ML powered validation protocol called Proof of Reputable Observation (PRO). PRO serves as a consensus protocol on the Constellation network. In addition, the protocol optimizes network topology with a performance-based approach to validator rewards.

Other Features

Constellation Network offers instant and fee-less transactions while providing data validation through its HGTP. As such, the network serves as an oracle for inter-chain and intra-chain data transfer. Plus, Constellation has a domain-specific programming language that also interacts with HGTP.

Moreover. The Constellation network is powered by its token $DAG. In fact, the platform’s Layer-0 protocol also enables users to mint their own tokens. As such, businesses can mint tokens that reflect their business logic, rewards, and metrics. However, users require $DAG to mint their own tokens, but more details on that later.

Proof of Concept

The Problem

If you are familiar with the popular 1980s TV series Knight Rider you will be familiar with K.I.T.T the self-driving supercar. K.I.T.T played the main actor Michael Knight’s sidekick. Although K.I.T.T was a fictional character, the rise of Artificial Intelligence (AI) and Machine Learning (ML) have made the reality of owning your own K.I.T.T an alluring possibility.

In fact, super car manufacturer Tesla has been diligently working to make this fantasy a reality. However, Tesla’s autopilot system has once again come under fire following an accident that killed two passengers late last week.

The accident serves as a reminder that despite immense investment, research, and development we are still far from achieving fully autonomous self-driving systems. Actually, Tesla warns its drivers to keep their hands on the steering wheel at all times. In this way, drivers can be ready to take over if the semi-autonomous driving system fails.

One of the barriers that have been preventing fully autonomous systems is an inherent weakness in the Laser, Imaging, Detection, and Ranging (LiDAR) system. LiDAR is the core sensor that provides situational awareness for autonomous vehicles.

However, LiDAR generates large quantities of data, for instance, 100 images per second that are sent to the onboard computer for processing. LiDAR data transfer, however, is vulnerable to internal and external attacks in transit. 

The Solution

Constellation’s consensus algorithm and distributed ledger technology cryptographically processes LiDAR data thus ensuring end-to-end security. Notably, for any car to reach Level 5 autonomy it will require a standard which Constellation co-authored as part of MOBI.

Constellation Tokenomics With $DAG Token

Constellation’s Hypergraph is the first DLT to provide a fully self-sustaining $DAG-based network with a unique consensus algorithm where its native token is baked into the core of the validation and transaction process while underpinning the network activity.

The infrastructure and the token economy allows the technology to literally scale into any area of digitalization. Data, IoT, mobile devices, smart cities, military applications, Decentralized Finance (DeFi), tokenized assets and trading, environmental applications, etc. With this $DAG mechanism in place, the crypto industry is finally seeing a token model that truly incentivizes all network stakeholders. Users can enjoy a network that’s decentralized, highly scalable, compatible with any business application, and has extremely low and transparent fees.

What is $DAG?

The utility of a currency is defined by its ability to conduct transactions in an economy. On the Constellation network, this ability is met by its native cryptocurrency $DAG. This native token is used for various purposes on the Constellation network. At its core, $DAG is not a security. Instead, it provides utility to allow users to engage in the Constellation digital economy.

The $DAG tokenomics is unique to the industry. It incentivizes the optimal operation of not only nodes but the underlying business models of any Layer-0 state channel token. Inefficient node operations eventually drain their node wallet and essentially decommission the token out of existence automatically.

Additionally, the token economy is structured as such that any liquidity injected into the $DAG ecosystem either through Layer-0 tokens, $DAG, or cross-chain pools will have positive effects on $DAG and any other Layer-0 state channel tokens.

In comparison to Ethereum and Polkadot, Ethereum uses Proof-of-Work consensus and its native token ETH is used only to pay for transaction fees. Meanwhile, Polkadot also uses Proof-of-Network consensus but its native token DOT is needed for transaction fees as well as to partially validate the network.

$DAG uses a unique new type of validation consensus called Proof-of-Reputable-Observation. The token is used mainly to validate the Constellation network and partially for network fees. 

What can $DAG do?

$DAG paves the way as the first full and true digital economy. Here, its underlying infrastructure and token model does not limit usability with high transaction fees nor speed limitations by the programmability of the economic factors of the tokens.

Striving to be a self-sustainable network $DAG Tokenomics is a living economy designed to generate maximum efficiency. It is an economy that comes with a built-in tendency to be socially fair and ecologically sustainable.

Users on the network can use $DAG to mint their own unique tokens. In order to do so, users must first purchase $DAG or spin up a node that receives rewards for maintaining the network and participating in consensus. $DAG is the main consensus layer in the network and state channels are applications built with $DAG.

Consensus cannot be done without $DAG. Without $DAG the consensus layer is lost. This means that $DAG is imperative to the network. It will run Hypergraph validation nodes, run state channel validation nodes on top of the hypergraph, and it will allow staking into state channels for more output.

By connecting the economies that exist on Constellation’s Hypergraph there is a generative network effect in the relative price index of Layer-0 tokens, thus, increasing the overall network value. $DAG directly underwrites the economic and computational activity on the Hypergraph by being needed for the validation process.

The interaction between network output, $DAG, and state channels combines the value of both $DAG and state channel Layer-0 tokens to create exponential growth.

$DAG Supply and Distribution

$DAG has a maximum capped supply of 3.67 billion tokens. Constellation tokenomics accounts for token distribution as follows:

Total supply3,670,000,000
Node validators1,600,000,000

Notably, 240 million validation tokens have been issued to date.


Constellation Network offers refreshing and technically strong fundamentals that are bound to disrupt blockchain as we know it. In addition, the PRO protocol is innovative and supports enhanced validator incentives with fuel stakeholder participation. Finally, $DAG plays an integral role in the network as a validation reward and by driving network liquidity via diverse liquidity pools. 

In conclusion, the blockchain has a strong proof of concept which makes Constellation the next big thing in the blockchain industry.

Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.