5. Economy and Fees

The Isolation Network ($ISONET) is built on a sustainable, self-regulating privacy economy. It aligns incentives between users, node operators, developers, and the protocol treasury—ensuring long-term stability, decentralization, and value accrual.

🔄 Overview: How the Economy Works

The ISONET economy is driven by three core flows:

1

Users pay for privacy services

Subscriptions, metered usage, authentication proofs, API usage, and premium features.

2

Node operators receive the majority of fees

They provide bandwidth, uptime, and infrastructure reliability.

3

The protocol treasury supports development and stability

Via governance-approved allocations.

💰 Fee Categories

ISONET uses a multi-stream fee architecture to ensure decentralization and sustainability.

Privacy Routing Fees

Users pay per GB routed:

  • 0.001 $ISONET per GB

  • Multi-hop routing included

  • Encrypted packet transmission

Premium Subscription Plans

Plan
Price
Includes

Basic

3 $ISONET/mo

Standard routing

Pro

5 $ISONET/mo

High-speed nodes

Enterprise

100 $ISONET/mo

SDK + SLA

Zero-Knowledge Authentication

  • 0.01 $ISONET per auth

  • Anonymous login

  • Credential proofs

  • Age verification

Developer Billing

Metered billing for SDK/API usage:

  • Per request

  • Per bandwidth unit

  • Monthly capped plans

📊 Fee Distribution

Every transaction in the ecosystem is split:

Destination
Percentage
Explanation

Node Operators

85%

Payment for routing bandwidth

Treasury

13%

Protocol development and grants

Burn Mechanism

2%

Permanent supply reduction

This structure ensures:

  • Strong operator incentives

  • Sustainable protocol funding

  • Deflationary pressure on supply

🔥 Burn Mechanics

Details on burn sources (click to expand)

  • 2% of all fees

  • Slashing penalties

  • Governance-approved burns

  • Failed authentication attempts

  • Expired enterprise credits

Burns are visible on-chain and tracked through a public dashboard.

💎 Token Utility Summary

$ISONET is used for:

  • Paying for bandwidth

  • Purchasing subscriptions

  • Authentication events

  • API + SDK usage

  • Staking for governance

  • Node collateral

  • Treasury funding

  • Burn events

A high-velocity token with real economic sinks creates long-term scarcity.

⚙️ Dynamic Pricing Model

ISONET uses a dynamic demand-sensitive model:

  • If traffic ↑, routing fees automatically increase

  • If traffic ↓, fees lower to stimulate network usage

  • A moving 7‑day average stabilizes volatility

Governance can override the algorithm if needed.

🌍 Geographic Multipliers

To encourage global node distribution:

  • Underserved regions receive up to 2× fee multipliers

  • Congested regions may receive reduced multipliers

  • Prevents centralization in US/EU hubs

🏦 Treasury Management

The treasury is controlled by governance and funds:

  • Core protocol development

  • Grants for privacy tech research

  • Bug bounties

  • Marketing + partnerships

  • Node operator subsidies (early stage)

Treasury holdings are transparently audited and visible on-chain.

📈 Sustainability & Long-Term Model

ISONET is designed for growth through:

  • Increasing global privacy demand

  • Rising bandwidth usage

  • Developer integrations

  • Enterprise partnerships

  • Token supply reduction via burns

The more the network is used, the more scarce $ISONET becomes.

🧠 Why This Model Works

The ISONET economy balances:

  • Incentives (for node operators)

  • Utility (for users and developers)

  • Sustainability (treasury + burn)

  • Decentralization (geographic and economic)

It creates a self-sustaining privacy network for the next generation of internet users.

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