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  • Welcome to Nash21
  • Team
  • Contact
  • WHITEPAPER
    • Prologue
    • 1. Introduction
      • 1.1. Creating equations to open new doors
      • 1.2 Mission and Vision
      • 1.3. Working of Nash21
      • 1.4. Uses and Participants
    • 2. Operational working of the protocol
      • 2.1. Tokenisation and use of the Rental Contract
      • 2.2. Application for “Nash21 Guarantee” by the Tenant
      • 2.3. Buying and Selling of NFTs
    • 3. Nash21 Guarantee
      • 3.1 Introduction to the Nash21 Guarantee
      • 3.2. Components of the Guarantee Fund
        • 3.2.1. Introduction
        • 3.2.2. LCA or Liquid Capital for Administration
        • 3.2.3. RF or Reserve Fund
        • 3.2.4. MCR or Minimum Capital Risk
        • 3.2.5. YRF or Yield of the Reserve Fund
    • 4. Protocol revenues
    • 5. Tokenomics
      • 5.1. “Protocol Controlled Value (PVC)” Strategy
      • 5.2. N21 tokenholder strategies
      • 5.3. Intrinsic nature of N21
      • 5.4. Monetary Policy
        • 5.4.1. Token distribution
      • 5.5 Governance
        • 5.5.1. Governance Fund
        • 5.5.2. DAO Foundation N21
    • 6. Roadmap
    • ANNEXES
      • Annex 1. Aspects of the internal process of Nash21
  • USER GUIDES
    • Guides to understanding Nash21
  • How do I tokenize my rental agreement?
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  1. WHITEPAPER
  2. 5. Tokenomics

5.3. Intrinsic nature of N21

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Last updated 2 years ago

Each N21 token is backed by the basket of assets that make up the Escrow Fund, Nash21 Treasury and Liquidity Pool (e.g. USDT, USDC, DAI and NFTs), giving them an intrinsic value.

These assets are also invested, generating returns, which, together with the premiums generated by the protocol utility (which fall according to section 4.4 in the guarantee fund itself) could cause a increase in the value of the N21 based on profit mechanisms due to pressure from buying mechanisms.

The N21 holder who wishes to dispose of his token and recover liquidity, may do so via "liquidity pool", without this operation affecting in any way the amount and composition of the guarantee fund, since it is a SWAP/sale in Secondary market. In addition, as the "liquidity pool" is supported and maintained in terms of liquidity by Nash21, the N21 holders ensure an unpunished exit value.

Figure 7. Virtual absorption loop of the value of the N21 token as a function of the purchase of NFTs by the protocol.