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Tokenomics

ETS Incentives & Revenue Sharing

Revenue Sources

The primary revenue streams in ETS are:

  1. Tagging Fees:
    • A per-tag fee is charged when creating tagging records.
    • This fee incentivizes participants and supports ecosystem operations.
  2. CTAG Auctions:
    • Tags (CTAGs) are auctioned to the highest bidder.
    • Auctions incentivize early adopters and ensure fair distribution of tags.

Revenue Distribution Table

Revenue SourceRelayerCreatorOwnerPlatform
Tagging Fees30%--50%20%
CTAG Auction20%40%--40%
CTAG Resale----100%--

Note: The revenue distribution percentages outlined above are preliminary and experimental, subject to change based on further analysis and ecosystem feedback.

Key Points:

  • CTAGs:

    • Upon creation, ownership of a CTAG is initially held by the ETS platform until released for auction.
    • Until a CTAG is purchased at auction, the owner's share of tagging record fees flows to the CTAG creator.
  • Relayers:
    • Relayers earn a portion of tagging fees whenever CTAGs they originated are used in future tagging records, regardless of which relayer creates the record.
    • Receive a share of auction proceeds when CTAGs they originate are sold.
  • Creators:
    • Taggers who introduce new, unique CTAGs during the creation of tagging records are credited as the Creator.
    • Until a CTAG is purchased at auction, the owner's share of tagging record fees flows to the CTAG creator.
    • Gain attribution and a share of tagging fees until their CTAG is sold.
  • Owners:
    • Receive tagging fees tied to their purchased CTAGs, turning them into revenue-generating assets.
  • Platform:
    • Captures a portion of revenue to support development and protocol maintenance.

Sustainability and Growth

ETS tokenomics prioritize:

  • Aligned Incentives: Ensuring every participant’s success contributes to the ecosystem’s growth.
  • Decentralized Value Capture: Revenue is distributed fairly among contributors.
  • Scalability: A flexible system that adapts to new use cases and innovations.

Through these mechanisms, ETS establishes a thriving ecosystem where tags become valuable, composable assets, and participants are empowered to innovate.