RWA Tokenomics

RWA is unique to other L2 network tokens in that it accrues value from both the protocols and transaction activity on the chain, a comprehensive representation of network value.

These funds are distributed back to veRWA holders, proportionate to their veRWA voting power. For example, a user with .005% of the veRWA voting power will receive .005% of the revenue collected by RWA.

All veRWA revenue is distributed in reETH.

RWA Value Accrual

The chart below details the various revenue streams distributing back to veRWA.

ProtocolRevenue SourceDistribution

re.al

Transaction Fees

100% of reETH profit

re.al

RWA sales tax

2% of RWA buys/sales

Tangible

Baskets rental yield

10% of all incoming rental yield

Tangible

Marketplace Fees

1% - Real estate TNFT secondary sales 2.5% - Gold TNFT, veRWA secondary sales

Pearl

CAVIAR incentives

20% of CVR accrued incentives

Pearl

ALM Fees

10% of user rewards managed by Trident

Stack

MORE borrowing fees

50% of borrowing fees

Arcana

Delta-neutral trades

50% of revenue (5% of all trade profits)

Last updated: March 4th, 2024

veRWA Details

IndicatorDetails

Ticker

veRWA

Token Type

ERC-720, Native (NFT)

Total supply

Cannot exceed supply of RWA

Contract Address

0xa7B4E29BdFf073641991b44B283FD77be9D7c0F4

Chain

re.al

Voting Power and Value Accrual

Locking RWA into veRWA is required to get access to revenue share from re.al.

RWA can be locked for a period of 1 month to 36 months.

Longer locks result in higher veRWA voting power. The higher the veRWA voting power, the more re.al revenue that NFT is entitled. It also means a longer vesting period to unlock the underlying tokens. Shorter lock periods result in a faster vesting period, but reduce the voting power and subsequently the revenue share.

Calculating Voting Power:

voting power = lockedAmount * vestingDuration / MAX_VESTING_DURATION

MAX_VESTING_DURATION = 93312000

Max vesting duration calculated in seconds using the Solidity calculation of seconds/day = 86400

RWA TOKENSLOCK DURATION (MONTHS)VE VOTING POWERREV SHARE %

200

1

5.56

x

200

6

33.33

6x

200

12

66.67

12x

200

24

133.33

24x

200

36

200

36x

Vesting and Value Accrual

veRWA positions are designed to maintain the voting power resulting from the lock amount (total tokens locked) and the lock duration. Unlike other vote escrow tokens, there is no need to relock to maintain voting power.

To claim the underlying tokens in a veRWA position, the user must deposit the token into the vesting contract. Once deposited, the token will undergo a vesting period, after which time the user can unlock and claim the underlying tokens on vesting completion. Vesting timing is analogous to lock duration. A one-year lock on a veRWA will take one year in the vesting contract to unlock.

Users cannot vest and claim rewards at the same time.

The vesting contract takes ownership over the veRWA and the vote power immediately goes to zero. Any fees that would normally accrue to the token are now distributed amongst all other unvested veRWA token positions.

Vesting time accrued carries over even if the token is removed from the contract. A token can be deposited in the vesting contract for one week and then removed, reducing the lock duration/vote power by one week of vesting. At a later time, it can be redeposited and continue to vest having already accrued a week of vesting at an earlier date.

Taxing System

RWA includes a taxing system that taxes buys & sells of unlocked RWA, it is not applied on pier-to-pier transfers.

The configurable fee will launched with a 5% tax.

On July 1st, the tax was reduced to 2%, eliminating the burn (2%) and liquidity provision (1%) while retaining the 2% distribution back to veRWA holders in reETH.

In the future, this fee may be reduced or removed entirely, changes approved via multisig transaction.

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