Why not just use lightning network alone?
While the Lightning Network is excellent for fast and scalable Bitcoin payments, using DamageToken alongside it offers specific benefits that make the combination more effective for DamageBDD’s infrastructure:
1. Utility Beyond Payments
DamageToken isn't just for transferring value; it plays a role in platform functionality, such as running BDD tests and verifying actions on-chain. This utility extends beyond what the Lightning Network alone can provide, as Bitcoin primarily handles payments without built-in infrastructure for managing platform-specific actions like test execution or verification.
2. Governance and Control
DamageToken allows for governance and control over the platform. Through the token, stakeholders can vote on upgrades, features, or other platform changes. The Lightning Network is purely a payment layer, so it cannot offer governance mechanisms tied to the platform's usage.
3. Tokenomics for Sustainability
The DamageToken serves as a tool for funding and sustainability. Selling DamageTokens provides liquidity and financial support for the ongoing development of the platform. Lightning Network payments would only allow for transaction flow, but not a direct method to raise funds or control the release and sale of utility tokens tied to platform growth.
4. Granular Infrastructure Control
DamageToken provides granular control over who can run tests, how many tests can be executed, and manages the overall activity within the platform. It's part of the infrastructure for controlling access and managing actions, whereas Bitcoin via Lightning Network is not designed to manage infrastructure control.
5. Dual Incentive System
Using both Bitcoin and DamageToken creates a dual incentive structure. Testers receive payouts in Bitcoin, a widely accepted and liquid asset, but they must use DamageTokens to interact with the platform. This aligns incentives and ensures both testers and developers remain invested in the platform’s success.
In essence, the Lightning Network provides efficient payouts, while DamageToken adds utility, control, and financial support for platform infrastructure. The combination leverages the strengths of both systems.