> For the complete documentation index, see [llms.txt](https://docs.sputnik.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sputnik.network/token-usdsignal/usdsignal-tokenomics/transition-to-poststate-blockchain-security.md).

# Transition to PostState Blockchain security

Transitioning to PostState Blockchain security means the following:&#x20;

## The $SIGNAL token will stop to be used as a security token and will only be used as an economic token and governance token, for:&#x20;

* Transaction fees on [**Sputnik DEX**](/sputnik-network-app-chain/sputnik-dex.md), [**Sputnik dApp**](/sputnik-network-app-chain/sputnik-dapp.md) and any other dApps that will be created on the [**Sputnik Network App-chain**](/sputnik-network-app-chain.md)&#x20;
* Payments for [**Sputnik App**](/sputnik-app.md) functionality&#x20;
* Decentralized governance of [**Sputnik Network**](/sputnik-network-app-chain.md), Sputnik DEX, Sputnik dApp and any other dApps that will be created on the [**Sputnik Network App-chain**](/sputnik-network-app-chain.md)&#x20;

## For Validators:&#x20;

* [**PostState Blockchain**](https://github.com/PostState) validators will begin to provide security for [**Sputnik Network App-chain**](/sputnik-network-app-chain.md)
* [**Sputnik Network**](/sputnik-network-app-chain.md) validators will be able to stop validating [**Sputnik Network**](/sputnik-network-app-chain.md) and will be given the opportunity to start validating [**PostState Blockchain**](https://github.com/PostState)&#x20;
* All transaction fees on [**Sputnik DEX**](/sputnik-network-app-chain/sputnik-dex.md), [**Sputnik dApp**](/sputnik-network-app-chain/sputnik-dapp.md) and any other dApps that will be created on the [**Sputnik Network App-chain**](/sputnik-network-app-chain.md) will be sent to the [**PostState Blockchain**](https://github.com/PostState) budget and distributed between validators and **PostState citizens**&#x20;

## For Delegators (stakers):&#x20;

* Delegators (stakers) of $**SIGNAL** will receive **PostState citizenship**, will no longer receive rewards for staking $**SIGNAL**, but as Citizens, will begin to receive **Unconditional Income** from **PostState**&#x20;
* $**SIGNAL** delegators (stakers) will receive a $**UNIT** drop proportional to their $**SIGNAL** stake&#x20;
* Delegators (stakers) of $**SIGNAL** will be able to continue staking $**SIGNAL**, but not for the purpose of receiving rewards for staking, but for the purpose of participating in the decentralized management of the [**Sputnik Network App-chain**](/sputnik-network-app-chain.md)&#x20;

## For Liquidity Providers paired with $SIGNAL:&#x20;

* Liquidity Providers will receive **PostState citizenship**, will no longer receive compensation for providing liquidity in pairs with $**SIGNAL**, but will continue to receive all swap commissions, and, like **Citizens**, will begin to receive **Unconditional Income** from **PostState**&#x20;
* Liquidity Providers will receive a drop of $**UNIT** proportional to the liquidity they supply in pairs with $**SIGNAL**&#x20;

## Transition period rewards

Throughout the transition to the [**PostState Blockchain**](https://github.com/PostState) security, validators, delegators and liquidity providers will receive rewards from the **Community Pool**:

* From the **Community Pool** will be allocated an amount of $**SIGNAL** in equivalent to rewards during network inflation by 10%

## Burning of $SIGNAL

After the finishing of Sputnik Network's transition to the security of the [**PostState Blockchain**](https://github.com/PostState), all non-used $SIGNAL from [**StakingRewards Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/stakingrewards-pool.md), [**Liquidity Rewards Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/liquidityrewards-pool.md), [**Community Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/community-pool.md) and [**PayFees Pool**](/token-usdsignal/usdsignal-token-distribution/creating-pools/payfees-pool.md) - will  be burned

## Future of Sputnik App

* [**Sputnik App**](/sputnik-app.md) will become one of the key elements of the economic infrastructure of the [**PostState Blockchain**](https://github.com/PostState)&#x20;
* The functionality of the [**Sputnik App**](/sputnik-app.md) will be developed using the [**PostState Blockchain**](https://github.com/PostState) budget&#x20;
* With an increase in the functionality of the application and zero inflation, as well as with continued demand for the functionality of the [**Sputnik App**](/sputnik-app.md), the price of the $**SIGNAL** token will have to increase
