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:
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
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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