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The PHONON token is an ERC-20 token that lives on the Ethereum network. The DAO utilizes the PHONON token within its governance structure and is used to verify DAO members’ authenticity. It’s used for voting purposes and rewards, such as protocol development, grants, bounties and community involvement. The PHONON token’s future uses include, collateral against bad actors within the manufacturers of Phonon compatible hardware (i.e. smartcards) and utilization as a bidding mechanism for mining-enabled Phonon cards (Details about mining will be announced in the near-term future).


The ERC-20 token contract for $Phonon can be found here.

phonons of Two Types

Native phonons (nPhonon)

A native phonon (nPhonon) is independent of any blockchain. Technically speaking, it is a hash associated with its secure hardware’s ID. It is mined on a Phonon card (and in the future, any Phonon-approved hardware). There is no fee to mine a native phonon — the costs are time and negligible electricity. A native phonon’s value is derived from its mining difficulty (i.e., how rare it is).

Backed phonons

A backed phonon is a key-pair tied to an on-chain asset. It is minted by interacting with a supported blockchain, and the fee to create a backed phonon is dependent on the blockchain. A backed phonon’s value is derived from the asset backing it. For example, a 2 ETH backed phonon is worth (surprise!) 2 ETH. You can think of a backed phonon as the keys to unlock it’s on-chain counterpart.

Both forms of phonon use the same hardware and wallet software.
Though they differ in a few key areas.

– Mineable by Anyone
– Untethered To Any Asset
– Useful for Small Transactions
– Defined Supply & Inflation Curve

Created by Anyone –
Support Most Assets –
Requires Gas to Create –
Wraps a Blockchain Asset –


No Fees
Infinite Scaling
Perfectly Private
Near-Instant Settlement

Learn more about both phonons, their use cases and some of the technical aspects of each by reading this article on native and backed phonons.
phonon the hardware enforced payment system logo stretch
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