5.3 SOURCE Governance Token

SOURCE fulfils three essential functions within the ReSource Protocol:

1. Staked SOURCE carries a portion of the network’s risk, in return for staking rewards.

2. Staked SOURCE grants the owner voting rights on network decisions, as elaborated above.

3. Unstaked SOURCE may be used by members to pay network fees.

Unstaked SOURCE do not carry specific risks associated with credit lines, except the usual risks associated with the holding of assets of any kind.

The means and manner by which SOURCE is staked and by which risk is transferred to SOURCE Stakers is elaborated on in the chapters above. In short, initial risks are assumed by Underwriters, who stake SOURCE to verify credit lines. These risks, and the associated staking rewards, can then be shared with the public via a delegated staking mechanism.

To understand how the ReSource Network consumes and recirculates SOURCE, refer to chapter 4.4, “SOURCE Token Dynamics.”