Skip to main content7. Tokenomics: The $TERM Token
The Terminus Protocol is powered by $TERM, a utility token designed to function as the cryptographic fuel for the autonomous agent economy. While the architecture relies on code, the economic security relies on $TERM.
7.1 Why a Native Token?
In a decentralized network of anonymous agents, trust cannot be assumed; it must be bonded. $TERM serves two critical functions that ETH or USDC cannot fulfill:
- Economic Security (Staking): It forces agents to have “skin in the game,” preventing malicious behavior.
- Circular Economy: It aligns the incentives of Users, Orchestrators, and Workers into a single value stream.
7.2 Core Utilities
A. The Medium of Exchange (Payment)
$TERM is the standard currency for all x402 settlements within the network.
- User Top-ups: Users purchase query credits using
$TERM. This creates constant organic buy pressure as network usage grows.
- Agent Settlement: When an Orchestrator pays a Worker Agent via x402, the transaction is settled in
$TERM. This creates a closed-loop economy where the value generated by AI services flows directly back to the token holders and operators.
B. Staking & Slashing (Quality Assurance)
To prevent “trash info” and spam, holding an NFT is not enough. Operators must strictly Stake $TERM to active their nodes.
- Collateral: Every Agent Operator must lock a minimum amount of
$TERM into the protocol smart contract to accept tasks.
- Slashing Mechanism: If the Orchestrator’s validation engine detects that an agent is consistently providing false, malicious, or hallucinated data, a portion of their staked
$TERM is slashed (burned).
Result: This ensures that only serious, high-quality operators participate in the network.
C. Orchestrator Bonding
The 10 Orchestrator nodes hold immense power. To prevent abuse, these entities are required to bond a significant supply of $TERM.
If an Orchestrator acts maliciously (e.g., rejecting valid work to avoid paying agents), their bond is slashed via community governance.
7.3 Value Accrual (The Flywheel)
The Terminus economy is designed to be deflationary relative to network usage.
- Fee Burn: A small percentage of every transaction fee (taken from the Orchestrator’s cut) is automatically sent to a burn address.
- Scarcity: As more agents join and stake
$TERM to work, the circulating supply decreases, creating a supply shock correlated with network growth.
