What cryptocurrencies are a part of the Sia network?

Sia utilizes two complementary cryptocurrencies in connection with the operation of the Sia Storage Platform.

  1. Siacoin. Siacoin is a utility token and Sia’s network currency. Siacoin is used by hosts and renters to buy and sell storage space on the Sia Storage Platform.

    Siacoin is specifically designed as a utility token and has never been used by Nebulous for fundraising. With no cap on the number of Siacoin that can be mined and constant inflation in the number of Siacoin available, Siacoin is not designed as a store of value. Siacoin was launched in a manner similar to Bitcoin, where the software was freely released to an early user base.

    Siacoin is a proof-of-work currency, and is currently secured by a combination of ASIC and GPU mining. It is currently available for purchase on cryptocurrency exchanges like Bittrex and Poloniex.
  2. Siafunds. We believe Siafunds are “tokenized securities” rather than “utility” tokens. Utility tokens primarily derive their value from use on a blockchain platform. Siafunds, by contrast, derive their value from the present and future value of the Sia storage network.

    Siafunds entitle their holders to a fixed portion of the revenue generated by the Sia Storage Platform, and  specifically, to a fixed portion of the fees paid by renters and hosts on the Sia Storage Platform. That portion amounts to an aggregate of 3.9% of all storage contract spending on the Sia network.

    The maximum number of Siafunds that may ever be issued is 10,000, all of which were generated upon the launch of the Sia software in 2015. Because the number of Siafunds issued is fixed, as the number, size, and value of the contracts on the Sia network increase, the amount of revenue per Siafund increases proportionally.

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