System Contracts¶

Understanding Koinos system contracts that power the blockchain's core functionality.

Overview¶

System contracts are special smart contracts that implement core blockchain functionality like tokenomics, governance, and resource management. Unlike regular contracts, they have special privileges and are integral to the blockchain's operation.

Core System Contracts¶

Economic System¶

• Tokenomics: Overall economic model
• KOIN and VHP: Native tokens and their roles
• Proof of Burn: Consensus mechanism
• Mana: Fee-less transaction system

Governance¶

• Governance: On-chain governance system
• Koinos Fund: Community development fund

Infrastructure¶

• Name Service: Human-readable addresses
• Resources: Resource management system

Key Concepts¶

Immutable vs Upgradeable¶

• Some system contracts are immutable for security
• Others can be upgraded through governance
• All changes require community consensus

Special Privileges¶

System contracts can: - Access privileged system calls - Modify blockchain state directly - Interact with consensus mechanisms

Integration Points¶

System contracts interact with: - User transactions - Block production - Fee calculation - Resource allocation

For Developers¶

Understanding system contracts helps you: - Build better applications - Optimize resource usage - Integrate with governance - Understand blockchain behavior

For Users¶

System contracts affect: - Transaction costs (through Mana) - Governance participation - Token economics - Network security