YELLOW Token
YELLOW is the utility token that provides access to the goods and services supplied by Layer3 Fintech Ltd. within the Yellow Network. It has a fixed supply of 10 billion tokens — no new tokens can ever be created, and there is no burn mechanism.
Token Functions
1. Mandatory Security Deposit for Node Operators
Every node operator must post YELLOW tokens as collateral to register on the network. This is the core mechanism that makes the network secure.
- Prevents spam attacks — flooding the network with malicious nodes requires real collateral for each one.
- Deters fraud — if a node participates in a fraudulent transaction, its collateral is automatically seized ("slashed") through on-chain fraud proofs.
- Scales with responsibility — as a node guards higher-value accounts, the protocol requires more collateral at risk.
The minimum collateral starts at 10,000 YELLOW and scales up to 125,000 YELLOW as the network grows.
2. Service Access Fee
All network services — clearing, settlement, data delivery, app subscriptions — require the consumption of YELLOW as a service access fee. Users who hold YELLOW pay fees directly at a discounted rate.
Protocol fees from clearing and trading operations are locked into the collateral of the nodes that processed them, increasing those operators' slashing exposure and strengthening network security over time.
3. Dispute Resolution Access
App builders who register applications on the network post YELLOW as a service quality guarantee. Users who have disputes with an application pay a processing fee in YELLOW to access independent arbitration. If the dispute is upheld, the app builder's collateral can be slashed.
On-Chain Contract
The YellowToken contract is a standard ERC-20 with EIP-2612 permit functionality. The entire 10 billion supply is minted to the Treasury at deployment.
| Property | Value |
|---|---|
| Name | Yellow |
| Symbol | YELLOW |
| Supply | 10,000,000,000 (fixed) |
| Decimals | 18 |
| Permit | EIP-2612 gasless approvals |
| Mint/Burn | None — supply is immutable |
Token Allocation
| Allocation | Percentage | Purpose |
|---|---|---|
| Founders | 10% | Subject to 6-month cliff and 60-month linear vesting |
| Token Sales | 12.5% | Distributed to participants who require YELLOW for service access |
| Community Treasury | 30% | Grants for app builders who consume YELLOW for services |
| Foundation Treasury | 20% | Funds ongoing R&D and delivery of Yellow Network services |
| Network Growth Incentives | 25% | Distributed automatically based on network scale |
| Ecosystem Accessibility Reserve | 2.5% | Ensures YELLOW remains accessible for its intended utility |
What YELLOW Is Not
- It does not represent ownership in Layer3 Fintech Ltd. or any affiliated entity.
- It does not entitle holders to dividends, profit-sharing, or any form of financial return.
- It is not designed to maintain a stable value — there is no peg, no reserve backing, and no stabilisation mechanism.
- Holding YELLOW alone does not grant participation in protocol parameter administration — that requires actively operating a node.
Key Numbers
| Metric | Value |
|---|---|
| Total supply | 10,000,000,000 (fixed) |
| Minimum node collateral | 10,000 YELLOW (scales to 125,000) |
| Collateral unlock period | 14 days |
| Fee range | 0.1% — 0.4% (dynamic) |