EO Token Utility

Staking and Delegation

The EO token is the foundation of eOracle's security. Validators must stake EO, combined with restaked ETH (via EigenLayer), to participate in data validation or chain validation. This dual-staking model significantly raises the cost of attacks, creating a robust, multi-asset security foundation that deters malicious behavior.

To incentivize participation and ensure protocol integrity, validators earn rewards for accurate and reliable performance. Delegators can contribute to security by assigning their EO to trusted operators, sharing in the rewards while allowing specialists to manage the technical responsibilities.

Governance and veEO

Holding EO also offers a way to influence eOracle’s future. By locking tokens, participants receive vote-escrowed EO (veEO), which grants them on-chain voting power. veEO holders can propose or vote on matters such as updating protocol parameters, adjusting rates, or adopting new OVS features. The longer tokens are committed to locking, the greater the governance utility and reward boosts, creating a powerful alignment between protocol success and long-term token holding.

Extended Protocol Commitment: Multi-Year Locking Framework

Token holders can choose to irreversibly convert their vesting schedule into a full token lockup. This voluntary conversion requires locking the tokens for a longer period than the remaining vesting duration. Once converted, holders can delegate these locked tokens to validators, enabling them to participate in network security via staking and receive veEO tokens with corresponding lock-duration boosts. While this option provides access to participate in eOracle validation and governance, the conversion decision is permanent and delegated tokens become subject to slashing risks based on their chosen validator's performance.

Payment for Oracle Services

OVSs can accept payments in EO or any other token, but rewards to validators and treasury fee are distributed in EO (with non-EO payments being converted to EO for rewards). This creates a steady stream of demand for the token through validator rewards. Each new specialized oracle, whether it's a sports data feed or a cybersecurity engine, contributes to this demand as their validators earn EO rewards for providing on-chain data. This core reward mechanism strengthens EO's utility as the eOracle ecosystem grows.

Future Gas Token

In the future, the EO token will serve as the native gas token for the eOracle chain, becoming essential to the network's daily operations. This shift will strengthen the token's role in both transactions and governance, directly connecting its value to eOracle's network activity.