1. Powering Validators and Network Security
Validators are the backbone of Portal. They are the ones who keep the network secure by confirming transactions, signing cross‑chain swaps, and making sure funds move safely between chains. Without Validators, the Portal Network cannot function.
To become a Validator, participants must deposit $PTB through the Gateway Contract on Ethereum. This deposit is recorded on the Portal Chain and is then used to bid for a slot in the Active Validator set. Only those who lock up $PTB can compete for these slots.
This system ensures that Validators always have something at stake. If they perform well, they keep their role and earn rewards. If they go offline or act dishonestly, their $PTB can be slashed. The higher the demand to become a Validator, the more $PTB is locked into the system.
In simple terms: Portal needs Validators to run, and Validators need $PTB to take part. This makes $PTB the foundation of network security and ties the growth of the Portal ecosystem directly to the token.
2. Reputation, Rewards, and Slashing
When Validators join the Portal Network, they do not just hold $PTB. They lock it up as collateral that can be taken away if they fail to perform. This is where the reputation and slashing system comes in.
Every Validator builds a reputation by staying online, proving their connectivity, and participating in signing and broadcasting. The longer they stay active and reliable, the more their reputation grows. With a strong reputation, Validators maintain their place in the Active Set and earn rewards.
If a Validator goes offline, misses a signing ceremony, or fails to broadcast when required, their reputation score starts to fall. Once reputation turns negative, the system begins slashing their staked $PTB. This means part of their locked tokens are permanently lost, creating a real financial penalty for poor behaviour.
The effect is twofold. For the network, it ensures that Validators are always motivated to stay online and protect the system, since losing reputation and $PTB directly costs them. For holders, it means $PTB is not just a passive token. It is the asset that enforces accountability. Validators who behave well strengthen the network, while those who fail are punished through the loss of their $PTB.
3. Locking and Unlocking Collateral
For $PTB, utility is not just about getting into the Validator set. Once tokens are deposited into the Gateway Contract and credited on the Portal Chain, they are locked as collateral for the entire time a Validator is active. This means that $PTB committed to the network is effectively taken out of circulation, reducing liquid supply and strengthening its role as the network’s economic base.
Unlocking tokens back to Ethereum is only possible with approval from the Validator Set, and only once a Validator’s active period ends. During auctions and active epochs, withdrawals are strictly prohibited. This rule ensures Validators cannot walk away with their collateral while still responsible for securing swaps and consensus.
For the network, this lock‑and‑unlock system guarantees that Validators always have skin in the game, which protects users during cross‑chain operations. For holders, it means $PTB is continuously absorbed into the system, creating a natural supply sink that grows as more Validators compete to participate.
4. LPs at the Centre of Portal
Portal’s native atomic swap system depends on deep, reliable liquidity to execute seamless cross‑chain fills. The architecture is built so that LPs are first in line for value, not the protocol.
Liquidity providers receive 100 % of the 0.3 % swap fee, paid in the base pair’s native assets such as BTC or ETH, and they also receive 65 % of protocol emissions in $PTB. Fees are earned on every matched swap, while emissions align LPs with long‑term network growth.
Because the swap fee is not split with the protocol, LP returns are not diluted by fee siphoning, which encourages deeper liquidity and tighter pricing.
Deeper liquidity improves execution quality and fill rates, which attracts more order flow, which in turn increases fee income and strengthens the case for providing liquidity on Portal. The design treats LPs as first‑class participants and recognises that reliable, well‑paid liquidity is what makes secure cross‑chain swaps possible.
5. Success of the Portal Network Directly Tied to $PTB
Each swap produces two fees. The 0.3 % swap fee goes entirely to LPs in native assets, while the separate 0.3 % platform fee is used in full to buy $PTB on the open market and burn it. As volumes rise, more platform fees flow into buybacks and burns, which steadily reduce circulating supply and create a deflationary pressure that compounds over time.
In parallel, $PTB is used as gas on the Portal Notary Chain, so every on‑chain action that records and validates cross‑chain activity consumes the token and creates ongoing transactional demand.
Together, these mechanics connect usage to value in a direct way: more swaps mean more burn and more gas consumption, while stronger token economics make it more attractive to provide liquidity and operate validators, which pushes activity higher again.
For example, on 1 billion dollars of monthly volume, a 0.3 % platform fee represents 3 million dollars of purchases that are converted into $PTB and permanently burned, on top of the gas usage that accompanies those swaps. This is how adoption and activity translate into token appreciation, and why the network’s success is inseparable from $PTB.
For those who read till the end, here’s your prize: Mainnet updates are imminent. It’s closer than you think so keep your eyes peeled!