The STABLE governance token handles validator staking and protocol decisions separately from the payment layer.
Crypto News
A Tether-supported blockchain project went live with a payment system that uses stablecoins for transaction costs instead of volatile native tokens. Stable protocol launched its layer-1 network Monday alongside a governance foundation and dedicated token for network security.
StableChain processes all transactions using USDT for gas payments, eliminating the need to hold speculative assets for conducting network operations. The STABLE governance token handles validator staking and protocol decisions separately from the payment layer.
The launch follows a deposit campaign that brought in over $2 billion from more than 24,000 participating wallets. Bitfinex and Hack VC led a $28 million seed round supporting development, with Tether CEO Paolo Ardoino advising the project.
CEO Brian Mehler said his team maintains ongoing discussions with regulatory bodies worldwide overseeing stablecoin payment systems. The network targets institutional and retail users seeking infrastructure purpose-built for dollar-pegged token transactions rather than general blockchain applications.
The Stable Foundation operates independently to coordinate network development, distribute grants, and manage community programs. STABLE token holders participate in governance votes and delegate to validators securing the blockchain through a proof-of-stake consensus mechanism.
Existing blockchains face limitations for payment applications due to design priorities favoring flexibility over transaction speed. Ethereum requires roughly three minutes for final settlement, creating friction for real-time payment scenarios despite hosting the majority of stablecoin supply.
Several projects are building specialized infrastructure for stablecoin operations. Plasma launched a USDT-focused network in September after raising $24 million earlier this year. Circle announced Arc, targeting enterprise payment applications. Stripe revealed plans for Tempo network after determining that current platforms cannot efficiently handle growing stablecoin volume flowing through its payment systems.
The STABLE token has a capped supply of 100 billion with no inflation mechanism. Initial distribution allocates 10% for early participants, 40% for developer incentives and partnerships, and 25% portions each for team compensation and investor returns. Vesting schedules include one-year cliffs and four-year release periods for restricted allocations.
Validators earn rewards from network fees collected in USDT rather than receiving newly minted tokens. The economic model separates payment processing from token issuance, focusing incentives on transaction volume rather than inflation-driven yields.
Partnership agreements with Anchorage Digital, PayPal, and Standard Chartered's Libeara platform provide institutional distribution channels. The collaborations aim to connect the stablecoin network with established financial services providers and crypto infrastructure operators.
Dollar-pegged token circulation has grown from roughly $199 billion to $308 billion over the past year, representing a 55% expansion. The market growth has attracted entrepreneurs building specialized infrastructure as stablecoins extend beyond trading applications into mainstream payment systems.
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