The CCD is the native token of the Concordium blockchain platform. Fundamentally, the CCD serves to pay for the network fees. These fees are earned by the validator nodes (bakers and finalizers) to process transactions and secure the network.
Bakers must stake CCD amounts to take part in the consensus.
The CCD powers the vibrant use-case ecosystem of Concordium, especially DeFi, as it serves as collateral and settlement medium.
Ultimately, the governance of the Concordium blockchain will be decentralized, with on-chain voting power belonging to CCD holders.
As a native token of a layer-one permissionless blockchain, the CCD shall support the ecosystem in a variety of ways.
Transaction fees are paid to the validators (bakers and finalizers) who run the Concordium infrastructure and thereby provide its availability with all its features of security, fast finalization, large throughput rate, etc. These fees are to be paid by end-users in CCD tokens. They are known in advance and stable expressed in Euro terms.
The block rewards consist of transaction fees and newly minted tokens. They are awarded for 85% to the block bakers, for 5% to the block finalizers, and for 10% to the Concordium Foundation. The rewards serve to incentivize node runners to participate in the consensus, thereby solidifying the blockchain.
Swiss Financial Markets Regulator (FINMA) has classified Concordium's token the CCD as a Payment-token, meaning that it is suitable to be used for on-chain settlement of transactions, as well as collateralization, and all other use-cases being used by Decentralized Finance.
Ultimately, the governance of Concordium will be in the hand of the community, who will vote to elect an executive committee. The vote will occur weighted according to the amount of tokens backing each vote.