$PIPE Tokenomics

Pipe Network is a decentralized CDN protocol on Solana that uses blockchain incentives to create a globally distributed network of PoP nodes, delivering faster, cheaper, and more reliable content delivery. The native token, PIPE, powers everything from staking and governance to bandwidth purchases through Data Credits (DCs).

Token Utility

PIPE is a multi-utility token that serves five primary roles:

• Staking – Node operators stake PIPE to participate in the network, improving their reputation and selection likelihood.

• Delegated Staking – Token holders can delegate PIPE to active nodes and earn proportional rewards.

• Payments via Data Credits (DCs) – Users burn PIPE to mint DCs, which are used to pay for content delivery and storage.

• Priority Services – Users pay in DCs for enhanced CDN services like faster delivery and premium caching.

• Governance – Staked PIPE grants voting rights on protocol upgrades, emissions, and key economic parameters.

Data Credit Model

Pipe introduces a dual-token architecture, where PIPE is converted into Data Credits (DCs)—non-transferable credits used to pay for CDN services.

• Conversion = PIPE burned to mint DCs

• Pricing = Oracle-based rate ensures cost predictability

DCs expire after a fixed 30-day epoch, offering users cost predictability even if PIPE is volatile.

Emission Model

Pipe Network uses a demand-driven mint-and-burn model to align incentives between users and node operators.

• DC Purchases – Users burn PIPE to acquire DCs

• Node Rewards – PIPE is minted based on DCs burned, balancing supply with usage

• Rewards – 100% for bandwidth (monthly), uptime is a requirement

• Delegated Share – 7% of node rewards go to individual stakers

Emission rates decrease over time, creating long-term scarcity while supporting early adoption.

Service Economics

Pipe introduces an auction-style marketplace for premium services:

Priority Bandwidth Guarantees faster delivery for latency-sensitive applications

Priority Cache Keeps high-demand content cached at edge nodes

This structure introduces market dynamics that reward high-performing nodes and ensure pricing reflects real-time demand.

Network Security & Governance

• Staking-based Sybil Resistance – Economic cost to participate prevents spam

• Proofs of Delivery – Cryptographic validation ensures content was delivered

• Decentralized Governance – Staked PIPE holders vote on emissions, upgrades, and protocol changes

• Audits & Bug Bounties – Ongoing third-party audits and bounties maintain codebase security

Token Supply & Sustainability

• Controlled Emissions – Bootstrap growth early, decline over time Stake Lockups – Reduce circulating supply, increase commitment Consumption Equilibrium – Burn-to-mint cycle stabilizes token economy Governance Control – Adjust emissions and incentives based on market conditions Optional Cap – May implement fixed or asymptotic supply cap

Revenue Flows

PIPE drives real value capture and distribution:

PIPE → DC Conversions – Core burn mechanism Node Rewards – Incentivized by real bandwidth usage Premium Services – Bids for priority access drive additional revenue Network Fees – Small PIPE fees on conversions can be routed to the treasury