The IOV Token serves as both the fee token and staking token for the Blockchain Name Service (BNS). Anyone who wishes to register a name on the BNS will have to pay their fee in IOV Token. Token registration fees are used to reward validators in return for securing registrations and renewals of names on the registry. Registrations must be renewed each year to verify that the namespace is active and maintained.
A strong demand of ownership of branded names is anticipated for the BNS registry. For example, if Facebook launches their own token, they’ll want to pay for the Facebook-branded “blockchain name”, in the same way, they would want to own Facebook.com, so their customers could easily find them. Individual users who register their human-readable wallet addresses will also increase demand for IOV Token. A human-readable name is a non-complicated human-readable value address which is needed in order to allow easy exchanges between end-users.
Securing recognizable, addresses will help businesses and individuals connect directly to each other without the need to go through intermediaries that charge a transaction fee.