CTC 101: The CTC Token Explained

Discover how the CTC token powers the Creditcoin protocol, how to stake your CTC, and the two different versions of CTC... all in this blog!

CTC 101: The CTC Token Explained

If you made it here, it’s almost certain that you’re at least somewhat familiar with the CTC token. Like most decentralized blockchains, the Creditcoin Network also uses a token to process transactions and incentivise network participants. But there’s actually more to CTC than meets the eye.

For example, did you know there’s a difference between mainnet and ERC-20 CTC? If not, you’ll need to pay close attention to this article. Indeed, we’ll explain everything you need to know about the present and future of the $CTC token - right here, right now.

Why does Creditcoin use a token?

The Creditcoin token (CTC) is the power behind the throne, incentivising network participants, powering real-world transactions, and underpinning the security of the network. But why do blockchains even need tokens?

Decentralized networks need a way to coordinate the behaviour of multiple different stakeholders to achieve the network’s overall objectives. Creditcoin has two main stakeholders: infrastructure users (fintech lenders and borrowers) and network participants (stakers in our case).

Blockchain tokens exist as the glue holding its parties together. Stakers provide a service (network maintenance) and in return, get paid in the network’s native tokens (in our case, CTC). Users benefit from using the network, so they need to buy and expend CTC tokens to access the network’s services. This creates a harmonious balance between token supply and demand.

Tokens also play a vital role in keeping a blockchain network secure. By creating economic incentives for good behaviour, and inversely, burning staker’s tokens for dishonest behaviour, tokens ensure that a network’s participants do as they’re supposed to.

With that brief token explainer completed, let’s now dive into the specifics of the CTC token powering the Creditcoin network.

How does the CTC token work? (Mainnet vs ERC-20)

The Creditcoin Network has two different types of tokens. Whilst these are both commonly called CTC, and represent two sides of the same coin, they actually have two different purposes. It’s important you understand this difference.

CTC (Mainnet) - As the name implies, these are CTC tokens used on the Creditcoin mainnet, and represent the primary utility token of the Creditcoin Network. CTC (mainnet) tokens are used for transaction fees as well as staking rewards. The primary market for CTC (mainnet) tokens are financial institutions and RWA fintech lenders recording their transactions on the Creditcoin network. CTC (mainnet) tokens are burned when used.

CTC (ERC-20) - CTC (ERC-20) are the tokens listed on crypto exchanges and represent the trading and vesting token of the Creditcoin Network. On centralized exchanges, you will see CTC (ERC-20) represented with the CTC ticker, while on decentralized exchanges, you may see CTC as G-CRE. CTC (ERC-20) aka G-CRE can be swapped to CTC (mainnet) using a one-way 1:1 swap function.

CTC (Mainnet)CTC (ERC-20) aka G-CRE
Purpose/UtilityMainnet transactions and staking rewardsTrading and vesting
Staking Rewards
Acquisition MethodSwap or stakingBuy on exchanges
Listed on Exchanges

How can I stake tokens and earn CTC?

The 2.0+ upgrade is set to transform Creditcoin and radically improve the stability, security and performance of the Network by transitioning the RWA protocol from PoW to NPoS. Whilst this doesn’t affect the core function or utility of either CTC token, it does change how users can acquire new CTC (mainnet) tokens.

Following the 2.0+ upgrade, users will now be able to earn CTC (mainnet) rewards by participating in Network security, either as a Validator or Nominator. In other words, by staking your CTC (mainnet) tokens, you can earn even more tokens. The easiest way to start staking is by joining the Network as a Nominator.

How can I swap my CTC (ERC-20) for CTC (mainnet)?

Want to participate in the 2.0+ upgrade and help secure the world’s leading RWA infrastructure chain? Well then, if you’ve been following closely you’ll know that you need CTC (mainnet) for that.

There are two main ways to get CTC (mainnet). One option is participating in one of the various Creditcoin events, where we frequently distribute free mainnet tokens! Alternatively, you can swap CTC (ERC-20) for CTC (mainnet) tokens.

During the 2.0+ release window, we will be releasing a new user interface allowing users to perform a 1:1 CTC (ERC-20) → CTC (mainnet) swap. Please remember that this swap feature is one-way only (for now).

What’s next for CTC after 2.0+

Looking even further ahead, the 3.0 upgrade is set to unlock a variety of new utility cases for the CTC token, including EVM-compatibility, universal smart contracts and more. Learn more in our 3.0 proposal.

About Creditcoin

Creditcoin is the world’s leading real-world asset infrastructure chain for financial institutions, connecting global borrowers, lenders and investors on-chain. To date, the protocol has helped its partners record over 4.27 million real-world credit transactions, valued at $79.7 million USD, while servicing 337,000 customers worldwide across emerging markets.

By transparently securing credit history and loan performance on the Credicoin network, the protocol has already helped thousands of borrowers, businesses, and investors secure capital financing, build credit history, and grow their global RWA investment footprint.

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