Common Wealth's token economics form a truly closed-loop economy that perpetually generates value for the protocol and its users. Unlike most protocols, all gains created by the running of the protocol (both transaction fees and investment revenue) are circulated back into the system while rewarding a loyal user base.
Value will flow into the economy primarily through:
platform transaction fees on all WLTH transactions (1%)
Fund management fees (2% per year, capped at 5 years)
“carry” fees from investments (10 - 50% depending on staking levels)
a dedicated community fund funded by transaction fees and secondary NFT sales
In addition, Common Wealth fund investors are greatly incentivised to own and stake WLTH tokens in receipt of significant (up to 90%) discounts on investment carry fees.
Value will only leave the economy in one of three ways:
revenue-share payout to genesis NFT holders (15% of protocol profits)
a deflationary buy-back and burn mechanism on investment returns
rewards & incentives programs
investment returns payouts
Community Fund returns as rewards for active community members (50% returned, 50% burned as deflationary mechanism)
As you can see there is zero unnecessary leakage from this economy, which is designed to preserve and increase the value in perpetuity as long as the protocol retains usage.
The Common Wealth platform offers vetted, early-stage deal flow from top industry figures, driven by a council of high-level venture capitalists, investors, entrepreneurs, and technologists. Community investors vote on which projects to invest in, with voting power proportionate to their investment in the fund. At Common Wealth, every limited partner is also a general partner and will share in the wealth.
Sell Some/All of Your Investment at Any Time
Historically, it has been a challenge for the average investor to maintain liquidity while their funds are deployed and awaiting a return, often for many years. Upon investing, you will receive a Fund NFT representing your stake in the fund. This Fund NFT can be sold in whole or in part at any time on Common Wealth and on secondary marketplaces, ensuring liquidity at all times.
Transaction-Based, Self-Sustaining Economics
This is a transactional tokenomics model, where value accrues to the protocol and, ultimately, to the token holders and investors. There are no preferential payouts. Transaction fees will enable the protocol to grow and reward a loyal user base for their contributions and performance, while also supporting a dedicated community fund. We are committed to avoiding ponzinomics.
There are no bolted on DefI mechanics here. Stake for discounted fees or governance participation. Carry fees on investment returns can be reduced significantly via staking WLTH tokens. What’s good for the investor is good for the protocol.