π΅Profit Sharing Model
Last updated
Last updated
In this groundbreaking model, intriguing market dynamics come into play, all of which are rigorously enforced through immutable smart contract logic and the natural forces of the market.
The value of the CERRA utility token is no longer subject to mere speculation or perception. Its worth is now intrinsically linked to the performance of the platform itself. As platform usage grows, more profits are generated, resulting in each CERRA token yielding greater passive income. It follows naturally that an asset generating higher returns would be more valuable.
Given that CERRA utility token holders are actual owners of the platform, they are incentivized to actively utilize and advocate for the platform. This active engagement directly enhances the value of their tokens. Entities holding a substantial portion of the total token supply are motivated to invest in and enhance the platform, thereby increasing returns not only for themselves but also for the wider community.
The Cerra platform will encourage DeFi product usage through various means, including the farming of Lender/Borrower bond NFTs in P2P lending and farming of Spot swap LP tokens, both of which can be exchanged for CERRA tokens. This approach empowers platform users to become true platform owners simply by utilizing Cerra's products.
Since only staked (and locked) tokens generate passive income, a significant portion of the circulating token supply will be removed from the open market. This action, in turn, amplifies the demand for CERRA tokens. The intrinsic demand for CERRA utility tokens, coupled with the choice that token holders must make between using their tokens to generate yields or casting votes in DAO proposals, renders votes backed by tokens considerably more valuable and calculated.
This underlying economic structure empowers the Cerra team to be self-sustaining by retaining a portion of tokens and refraining from selling them in the open market, thus further restricting the token supply. From an end user's perspective, it is much more appealing to utilize products they own and reap a share of their profits, rather than funding someone else's endeavors.