Tokenomics

Value Capture Mechanism

Value Capture Mechanism

ETH6900’s value capture model transforms every optimized transaction into measurable on-chain economic activity. Rather than relying on speculation or external market factors, ETH6900 generates organic token demand from protocol usage, relayer fees, and staking participation.

Each time a user saves on gas or a transaction is routed through the ETH6900 relay network, part of that value flows back into the ecosystem. This feedback loop creates sustainable economic pressure that rewards active users and strengthens the treasury, while maintaining a self-regulating balance between growth and scarcity.

Core Value Sources

Source

Description

Token Impact

Transaction Fees

ETH6900 collects a small coordination fee (0.05–0.3%) on optimized transactions executed through its relay network.

Treasury accrues $ETH6900 and ETH revenue for buybacks and development.

Gas Savings Capture

When users save on gas, ETH6900 collects a fractional share (5–10%) of the total savings as protocol revenue.

Generates real yield from optimization efficiency, creating intrinsic token value.

Relayer Staking Yield

Relayer operators stake $ETH6900 to secure access to broadcast privileges and receive transaction-based rewards.

Locks supply, reducing circulating tokens while creating stable yield for holders.

DAO Buybacks

Treasury periodically buys back tokens using network revenue from relay fees.

Reduces market supply and supports long-term token price equilibrium.

Enterprise Integrations

Institutional users pay subscription or performance fees in $ETH6900 or ETH for dedicated RPC endpoints.

Expands non-inflationary revenue and deepens token utility across sectors.

  • Treasury Wallet receives all network revenues and executes automated allocations through smart contracts.

  • Staking Reward Pool distributes real-yield returns to token holders who secure the network.

  • Burn Contract permanently removes a fixed percentage of each cycle’s revenue.

  • Operational Reserve supports ongoing development, audits, and community initiatives.

Revenue Split Policy

Allocation Target

Percentage

Description

Treasury Growth

40%

Funds development, liquidity, and ecosystem scaling.

Staking Rewards

35%

Distributed to token stakers and relayer operators.

Token Burns

15%

Sent to a verifiable burn address to reduce supply.

Community Incentives

10%

Rebates, grants, and engagement rewards.

These ratios are governance-adjustable, allowing the DAO to modify them as the network evolves or as demand for staking and liquidity shifts.

Economic Flywheel

The ETH6900 protocol is designed to create a positive feedback loop between activity, demand, and scarcity.

  1. Users perform transactions through ETH6900.

  2. Protocol collects small fees and savings share.

  3. Revenue is split between staking, treasury, and burns.

  4. Buybacks and burns decrease supply.

  5. Reduced supply + growing demand increases token value.

  6. Higher token value incentivizes more staking and participation.

  7. Staked tokens reduce circulating supply, completing the loop.

This circular model makes ETH6900 function as a self-sustaining ecosystem, where usage growth directly translates to token value appreciation and network health.

Staking Yield Mechanics

ETH6900 staking yield is powered by protocol revenue, not inflationary emissions. This means staking rewards scale with network adoption instead of token printing.

Revenue Source

Contribution to Yield

Frequency

Relay Coordination Fees

45%

Continuous

Gas Savings Capture

30%

Variable, based on activity

Enterprise Integrations

15%

Monthly

Treasury Reallocations

10%

Quarterly

The staking contract redistributes rewards proportionally to the size and duration of each participant’s stake. Long-term stakers also benefit from compound yield as rewards are auto-redeployed unless withdrawn.

Treasury Growth and Utilization

The ETH6900 Treasury serves as both a stability mechanism and a growth engine. It accumulates value in ETH, $ETH6900, and stablecoins, ensuring operational resilience while continuously fueling ecosystem expansion.

Treasury Objectives:

  1. Fund ongoing development and audits.

  2. Finance DAO initiatives and integration grants.

  3. Maintain on-chain liquidity for CEX and DEX pools.

  4. Conduct strategic buybacks when treasury surplus exceeds defined thresholds.

Treasury transparency is enforced through on-chain reporting and quarterly financial disclosures visible to all token holders.

Burn Transparency

All burns are executed via a dedicated contract and publicly verifiable through Etherscan. Each burn cycle includes metadata detailing the source and reason.

Example Transaction Metadata:

{
  "event": "protocol.burn",
  "source": "relay_fees",
  "amount": "32000 ETH6900",
  "txHash": "0xabc...",
  "timestamp": "2025-10-05T14:00Z"
}

This ensures complete traceability of all deflationary actions, aligning with ETH6900’s principle of transparency and accountability.

In Summary

ETH6900’s value capture model converts network usage directly into on-chain revenue, staking yield, and token scarcity. Every transaction, relayer operation, or integration adds measurable economic value back to the ecosystem.

By tying token demand to genuine utility and fee circulation, ETH6900 eliminates the need for inflationary rewards and speculative hype, creating a fundamentally sustainable token economy backed by real network performance.