> For the complete documentation index, see [llms.txt](https://docs.roamfi.net/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.roamfi.net/tokenomics/consumption-treasury-and-growth-linkage.md).

# 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                               |