Tokenomics // Lesson 02

Yield Capture

Definition: Physical-to-Digital Value Transfer

Yield capture is the mechanism by which the protocol converts physical rental income (USD) into digital value for token holders. This represents the "Exogenous Revenue" that drives institutional protocols.

How it Works: The Value Pipeline

The process is automated. Rental income is collected by the property manager, converted into stablecoins, and then used by the protocol to execute market-buys or distribute rewards according to the smart contract logic.

The Distribution Logic

Direct Yield

Dividends distributed in stablecoins directly to token holder wallets.

Indirect Yield

Value capture through buybacks that increase the scarcity of the remaining tokens.

Institutional Significance: Real-World Backing

Unlike "Endogenous Yield" (which relies on token emissions), this model is backed by real-world cash flow. This creates a fundamentally different risk-return profile that is more attractive to sophisticated, institutional-grade capital.

Knowledge Checkpoint

1. What is "Exogenous Revenue" in the context of this protocol?

Revenue generated by selling more tokens to new users Revenue generated from external sources like physical property rent Revenue generated by the protocol's own token emissions

2. How is rental income typically moved into the protocol?

By sending physical cash to the blockchain By converting fiat income into stablecoins and routing through smart contracts By having the property manager buy tokens on their personal account

3. Why is "Exogenous Yield" more attractive to institutional capital?

Because it's a newer concept Because it's backed by real-world cash flow rather than just token inflation Because it avoids all government regulations