Value Accrual Mechanisms
Plain English
Ways that protocol success translates into token value. This might be through revenue sharing, token burns from fees, staking requirements, or governance rights. Good mechanisms ensure token holders benefit when the protocol grows.
Technical
Economic structures connecting protocol growth to token value appreciation. Mechanisms include: fee distribution to holders, buyback and burn programs, staking yield from revenue, governance rights over valuable decisions, and exclusive access to protocol features. Effective value accrual requires sustainable competitive advantages and clear utility for token holding.