Monetization Strategy
💹 Monetization Strategy – Sustainable Value Capture
Although Orypton delivers 100% of the profits to investors, the ecosystem implements an internal marketmaking system as the main sustainability mechanism.
⮕ How the System Works
Controlled issuance: A limited amount of tokens are unlocked each year, while the rest remains in vesting. Additional issuance is directly linked to the performance of the fund, which avoids arbitrary inflation.
Performance-linked staking: Users who lock in their tokens receive rewards for both passive and active participation. Active rewards are adjusted according to the returns generated by the fund, aligning incentives between managers and investors.
Programmed inflation: When new tokens are generated as rewards, the system calculates their inflationary impact and communicates it to the DAO. This transparency allows for informed decisions on possible adjustments or buybacks.
Automatic buyback: If inflation exceeds certain thresholds, a proposal to buy back tokens in the market is triggered. These repurchases are executed at strategically lower prices than at issuance, which allows absorbing excess supply and stabilizing the price of the token.
Internal benefit: The differential between repurchase prices and market prices generates a store of value for the ecosystem, which contributes to its financial stability without the need to charge direct fees.
Together, these streams cover operational expenses and risk buffers without charging management fees or dipping into investor returns, making Orypton’s model both user-centric and economically sustainable.
Full algorithmic details of points are covered in the dedicated Market Making section.
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