What is SUB token on Polkadot? How does it work?
SUB tokens are the native tokens of the Substrate blockchain framework, which is the underlying technology that powers Polkadot and many other blockchain networks.
Here's how SUB tokens work in the context of Polkadot:
SUB tokens serve as a utility token within the Substrate ecosystem. They are used to pay for transaction fees and on-chain computing resources when interacting with Substrate-based blockchains like Polkadot.
SUB tokens are used for staking and governance on Polkadot. Token holders can stake their SUB tokens to help secure the Polkadot network and participate in the governance process by voting on proposed protocol changes or upgrades.
SUB tokens play a role in the parachain auction process on Polkadot. Projects that want to launch their own parachain (a parallel blockchain connected to the Polkadot Relay Chain) need to participate in these auctions by locking up SUB tokens as a bond.
SUB tokens can be used as a cross-chain asset on Polkadot, allowing for the transfer of value between different parachains and the Relay Chain.
SUB tokens are also used to pay for on-chain storage and computational resources when building and deploying smart contracts or decentralized applications (dApps) on Substrate-based networks like Polkadot.
It's important to note that while SUB tokens are the native tokens of the Substrate framework, each specific blockchain network built on Substrate may have its own native token. For example, Polkadot has DOT tokens, while Kusama (Polkadot's canary network) has KSM tokens. However, SUB tokens still play a vital role in the overall Substrate ecosystem, enabling various functions and operations across different Substrate-based networks.
