This section of the documentation provides an overview of the on-chain mechanisms governing $THEO and $YIMBY interactions, the minting process of $THEO, and the flow of treasury funds within Theopetra's ecosystem. These components are central to the network's tokenomics, ensuring a balanced and sustainable economic model.
$THEO is minted as new funding is injected into the protocol for property acquisitions, following a price curve that adjusts minting costs in response to supply and time.
Net rents paid to the protocol are used to purchase $THEO and convert to $YIMBY, and returned to residents.
$YIMBY acts as an internal access token, allowing residents and DAOs to gain priority in acquisitions. The minting process and treasury fund management are designed to support Theopetra's long-term stability.
The interaction between these elements forms a tokenomics flywheel, promoting a cyclical reinforcement of the network's economic health. This system is crucial for maintaining balance and sustainability as the network evolves.
The subsequent section will explore the on-chain ecosystem in more detail, focusing on the technology and governance that enable Theopetra's operations. We will look into the network's functionality, providing a comprehensive understanding of the system's design and operation.