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.
re.al
Transaction Fees
100% of reETH profit
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: October 15th, 2024
veRWA Details
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
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 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.
On September 16th, the tax was modified where the 2% fee charged on RWA swaps is permanently burned, instead of being distributed back to veRWA holders as reETH.
In the future, this fee may be reduced or removed entirely, changes approved via multisig transaction.
Unclaimed Rewards
Any reETH which is unclaimed six months after its initial distribution to a veRWA account will be returned back to the revenue distributor and redistributed between all users. Only the amount of reETH which is unclaimed longer than six months will be redistributed, not the full claimable amount.
Last updated