4.2. Value Accrual
For what it's worth, even if a protocol is widely adopted, it is not a given that the performance of its native token will follow. Under a poorly designed value accrual mechanism, holders won't get to reap the economic value generated from user activity on the protocol itself.
With $REIGN functioning as the fuel of Reitio, it is of paramount importance that $REIGN's value accrual is made to be directly proportional with the platform's actual usage. It is in our belief that Reitio's proponents and advocates, especially those that persisted during the stages where Reitio is in its most vulnerable state, deserve to be rewarded for their contributions towards the realization of Reitio's long-term going-concern.
With this in mind, $REIGN will be the sole legal tender to conduct any transaction throughout Reitio's network economy, as well as being the only proxy for users to participate in governance processes pertaining to the Reitio protocol.
To put things into perspective, $REIGN will be the denominating currency for users to pay the flat "creation fee" per each 3D asset created on the platform, the royalties to community 3D artists on usage of premium templates, and the network fees for gas-consuming operations (ex: create asset, mint asset as NFT, deploy asset to virtual worlds, etc.).
Moreover, $REIGN holders will be entitled to 100% of Reitio's protocol revenue, which mainly comes from two sources: flat "creation fee" per asset created, and "listing fee" cut derived as a percentage from the royalties payable to community 3D artists. Protocol revenue would be immediately burned upon receipt, which has the effect of distributing value pro-rata to all $REIGN holders at that given moment.
As such, $REIGN is fundamentally deflationary — the rate at which its supply base contracts directly correlates with Reitio's own platform activity (or protocol revenue), adjusted for $REIGN's aggregate market price during that period. This means as long as Reitio oversees real platform usage, price of $REIGN will not fall to very discounted levels: the lower the price, the more $REIGN units burned to service the same dollar amount in protocol revenue, the more reduction in $REIGN's supply, which results in more upwards price pressure.
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