5.3. Intrinsic nature of N21

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.

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

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.