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Consumption, Treasury, and Growth Linkage

The tradable nature of tokens allows them to become the core reserve assets of a project’s on-chain treasury.

This mechanism directly connects consumer spending with project growth:

Consumer Action
Business Result

More purchases →

Higher project revenue

Higher revenue →

More tokens stored in treasury

Larger reserves →

Stronger token price support

Rising token value →

Direct benefit for token holders

For the first time, consumers experience that spending not only grants product access but also generates value for themselves. This alignment fosters stronger user engagement, higher sales, and a positive cycle of shared growth between businesses and their customers.

Comparison: Loyalty Points vs. Tokens

Dimension
Loyalty Points
Tokens

Issuance Mechanism

Unlimited issuance, continuous inflation, leading to devaluation

Limited total supply, or decreasing issuance model, ensuring scarcity

Value Stability

Continuously devalues over time

Potential to appreciate with project development and market demand

User Incentives

No difference between early and late users

Early users have more opportunities to gain additional benefits

Liquidity

Can only be consumed or redeemed within the project

Freely tradable on secondary markets, with asset properties

Price Discovery

No market price, only determined by the project party

Market-based pricing, transparent and public

Impact on Cash Flow

Users tend to use points quickly, causing cash flow pressure

Users tend to hold long-term, relieving pressure on cash flow

User Experience

Expires once used, no asset property

Can appreciate in value, consumption becomes acquiring tangible value, forming positive loop

Project Value Link

Detached from project growth

Treasury-reserved tokens directly link consumption with growth

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