How Unit Network Works
Unit Network combines a purpose-built blockchain with intuitive financial tools to create a complete token economy platform.
- The core components of Unit Network
- How tokens, trading, and treasuries interact
- Why it's built on Substrate
The Big Picture
Unit Network is a Layer 1 blockchain purpose-built for the token economy. It lets anyone create tokens, trade them on a decentralized exchange, back them with real assets, and build communities — all without writing code.
┌─────────────────────────────────────────────────────┐
│ Unit Network │
│ │
│ ┌──────────┐ ┌──────────┐ ┌──────────────────┐ │
│ │ Tokens │ │ Exchange │ │ Treasury │ │
│ │ Create & │ │ DEX + │ │ Reserve-backed │ │
│ │ manage │ │ AMM │ │ floor price │ │
│ └──────────┘ └──────────┘ └──────────────────┘ │
│ │
│ ┌──────────┐ ┌──────────┐ ┌──────────────────┐ │
│ │ Staking │ │ Vaults │ │ Oracle │ │
│ │ Bond + │ │ Custody │ │ Price feeds │ │
│ │ Pool │ │ + loans │ │ every 4 blocks │ │
│ └──────────┘ └──────────┘ └──────────────────┘ │
│ │
│ Built on Substrate (Parity Technologies) │
└─────────────────────────────────────────────────────┘
Core Components
1. Tokens
Unit Network supports five categories of tokens, all managed on-chain:
| Category | Purpose | Examples |
|---|---|---|
| UNITCOIN | Native utility token | UNITCOIN (ID 0) |
| Wrapped Crypto | External assets bridged on-chain | BTCU, ETHU, DOTU |
| Stable Tokens | Fiat-pegged stablecoins | USDU, GBPU, EURU |
| Industry/City | Sector and geographic tokens | MUSIC, LONDON, TECH |
| User-Created | Custom tokens by anyone | Any |
→ Deep dive: Token Types
2. Exchange
Every token automatically gets a decentralized exchange (DEX) paired with USDU. Trading uses an AMM model — no order books, no gatekeepers.
→ Deep dive: Exchange
3. Treasury
Every token has an immutable treasury holding reserve assets (BTC, ETH, DOT, etc.). The treasury provides a transparent floor price: total treasury value ÷ total token supply.
→ Deep dive: Treasury
4. Staking
Two staking mechanisms let users earn passive income:
- Bond Staking — Lock tokens for fixed APY (1–30%)
- Pool Staking — Provide liquidity and earn 0.5% of every trade
→ Deep dive: Staking
5. Vaults
Vaults provide decentralized custody for cross-chain deposits. Users lock UNITCOIN as collateral to receive external crypto deposits.
→ Deep dive: Architecture — Vaults
The Revenue Engine
Every transaction feeds back into the ecosystem:
| Action | Fee | Distribution |
|---|---|---|
| Exchange trade | 2% | 0.5% UNIT Treasury + 0.5% Token Treasury + 0.5% Liquidity Pool + 0.5% Vault |
| Withdrawal | 1% | 0.5% UNIT Treasury + 0.5% Vault/Workers |
| Transfer | Free | — |
| Staking | Free | — |
→ Deep dive: Tokenomics
Why Substrate?
Unit Network chose Substrate because it provides:
- Custom runtime — Purpose-built pallets for tokens, exchange, treasury (not generic smart contracts)
- Forkless upgrades — Protocol upgrades without hard forks
- WebAssembly runtime — Deterministic execution across all nodes
- Polkadot compatibility — Path to cross-chain interoperability
- Battle-tested — Powers Polkadot, Kusama, and hundreds of chains
→ Deep dive: Architecture
Next Steps
- New to Unit Network? Start with the Quickstart
- Want to understand tokens? Read Token Types
- Ready to build? See Architecture