5.1 RAC Token Economy and Value Circulation Model
The RAC Token serves as the core incentive mechanism and value medium within the RealAsset Chain (RAC) ecosystem. Its design goes beyond internal asset interactions, enabling long-term sustainable growth through incentivization, utility, governance participation, and ecosystem empowerment. The RAC token economy is structured around four pillars: utility, empowerment, incentivization, and governance, forming a complete value loop.
Token Utility Scenarios
Transaction Fee Payments RAC Tokens are the primary gas fee token for all transactions and smart contract interactions on the platform. Users must pay in RAC when trading tokenized assets, initiating cross-chain transfers, or interacting with smart contracts. A portion of collected fees is redistributed to stakers and liquidity providers, creating a “use-and-earn” feedback loop.
Staking and Yield Generation Users can stake RAC Tokens to support network consensus and security. Depending on the amount and duration of the stake, users receive either stable returns or variable rewards linked to platform performance. The staking mechanism is also tied to on-chain node governance, encouraging long-term user participation in RAC's operational framework.
Governance Participation As a governance token, RAC gives holders the right to vote on key decisions, such as parameter changes, asset onboarding whitelists, protocol upgrades, and community treasury allocation. This ensures RAC evolves through decentralized decision-making in line with DAO principles.
Value Circulation Mechanism
Value Inflows:
Users pay fees in RAC Tokens, generating continuous platform revenue.
Asset issuers must lock or burn a certain amount of RAC Tokens to issue RWA assets on-chain, increasing token consumption.
Users holding RAC for staking and liquidity mining help lock circulating supply, supporting price stability.
Value Outflows:
A portion of platform fees is distributed back to stakers.
Governance and liquidity mining rewards are issued in RAC Tokens.
The project team conducts scheduled buybacks and token burns, establishing long-term deflationary expectations.
Intrinsic Value Drivers: The intrinsic value of RAC Tokens is driven by:
Platform transaction volume
Total value locked (TVL) in RWA assets
Community governance participation
Ecosystem partnerships and integrations
These factors reflect the real economic activity within RAC and shape token demand organically.
Long-Term Stability and Anti-Volatility Mechanisms
To mitigate the risks of extreme token price volatility, which could destabilize the platform economy, RAC has implemented the following safeguards:
Fee Pegging Mechanism: Transaction fees dynamically adjust based on market supply and demand to prevent over-deflation or excessive inflation.
Variable Staking Yield Model: Staking returns fluctuate with market conditions, encouraging users to self-adjust staking behavior and enhance macro stability.
Quarterly Revenue Buyback Program: A fixed portion of platform revenues is used to buy back RAC Tokens from the secondary market for permanent burn, reducing supply and maintaining value support.
This economic model ensures that RAC Token not only serves as a medium of exchange, but also anchors platform security, incentivization, governance, and long-term utility—fostering a healthy, self-sustaining Web3 economy for real-world asset tokenization.
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