💡How It Works?
An overview of the mechanics behind Server Protocol’s governance and reward system
Server Protocol is powered by a single, modular smart contract deployed on Solana, designed to manage all core functionalities of the ecosystem. This architecture ensures high efficiency, transparency, and low-cost interaction for users.
This section provides a high-level summary of how the system works. Each mechanism can be explored in detail via the dedicated pages linked below:
🧠 Staking & Dynamic Emission
Users stake $SERVER to earn $BYTES — but with a twist. Emission rates are dynamically adjusted: they decrease for inactive users and reset only when they actively use their BYTES for proposals or votes.
→ Learn more → Staking & Dynamic Emission
🗳️ Proposals & Voting System
Anyone can propose a project by burning $BYTES and paying a small $SERVER fee. Voting is permissionless and weighted by reputation. Votes can be positive or negative, and each user can vote once per project, with the ability to change their vote later.
→ Learn more → Proposals & Voting
🧯 Burn & Supply Control
$BYTES are permanently burned upon each use. Combined with a dynamic emission model, this creates natural scarcity and rewards sustained engagement rather than passive holding.
→ Learn more → Burn & Supply Model
🏆 Grant Allocation
Projects that receive a positive net score (more upvotes than downvotes) become eligible to receive grants in $SERVER. These are distributed progressively based on on-chain milestones tracked via Grant Accounts.
→ Learn more → Grant Allocation
📊 Reputation System
Users earn Reputation Points by participating with $BYTES. Points increase their voting power and decay over time when inactive — preventing manipulation by whales or dormant wallets.
→ Learn more → Reputation System
💎 Treasury-Backed Model
All $SERVER fees from actions (votes, proposals) are routed to a Treasury Wallet instead of being burned. These funds are later reinvested into grants and ecosystem growth, ensuring a sustainable and circular economy.
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