Revenue-Based Yields

Revenue-based yields refer to incentive structures where the rewards distributed to participants are directly tied to the revenue generated by the protocol. This is a much more sustainable model than inflation-based rewards, as it ensures that the protocol is not creating new tokens out of thin air to pay for usage.

Instead, it shares the success of the protocol with its users and token holders. This alignment of interests creates a strong foundation for long-term growth and treasury stability.

It also makes the protocol more attractive to serious investors who look for real economic activity. Transitioning from inflation-based to revenue-based yields is a major milestone for many mature DeFi projects.