If you consider Etherlite as a country then ETL is it’s native currency. Everything happens in Etherlite, ETL is used for that. It is EtherLite network’s native coin. It is used to sustain the network, run the governance mechanism and to pay the network fees. By holding ETL, participants are able to access EtherLite’s core functionalities.
Use of ETL –
1. Securing the network
EtherLite runs on a Proof-of-Stake mechanism which requires ETL to sustain the network. Validator nodes are required to stake a minimum of 100,000 ETL and in return validators will receive rewards and fees for their service. If validator does a malicious activity, then his staked ETL are basically confiscated
‘Governance Tokens’ enable users to vote on the future of decentralized protocols, sure, but they also present fresh ways to entice assets onto protocol. ETL is used to run on-chain governance mechanisms for EtherLite. It will enable users to vote on the future of EtherLite. Governance will truly make EtherLite a decentralized protocol.
The ETL token is ideal for sending and receiving payments thanks to the EtherLite network’s high-throughput, fast finality, and low fees. On EtherLite, money transfers take place within seconds and it cost much less.
4. Network fees
ETL is used to pay for general network fees such as transaction fees to access and support network operations.
5. Reward Distribution
Along with network fees, rewards in the EtherLite ecosystem are distributed using ETLs.