# Earning from veRWA The veRWA token is an NFT (**N**on-**F**ungible **T**oken, following ERC-721 guidelines) that stores $RWA tokens. We have a separate [page about RWA](/re.al-community/re.al/the-rwa-token.md) management, so feel free to read it if you have question about it. This page presents how you can earn shares of the chain's revenue and what are the current and future sources of revenue. ## Current Sources of Revenue When the re.al chain launched back in May 2024, it was already designed around the veRWA token as the main source of revenue for builders and community of the ecosystem. For the full details about veRWA, please visit [the official documentation](https://docs.re.al/rwa-token/rwa-tokenomics). Locking your RWA tokens into a veRWA NFT makes you eligible to earn revenue from the chain's activity, as most applications built on the re.al L2 allocate part of their revenue to veRWA holders..
### Revenues from the chain itself Every single transaction that is executed on the re.al L2 chain requires gas as a payment method. This gas is used to settle transaction to the settlement chain, which in the case of re.al is Ethereum. Additional fees are added to the transaction fees, and they are 100% transferred to veRWA holders. In other words, as there is more and more activity on the chain, and as the total transaction fees grow with the activity, the more reETH is distributed to veRWA holders. If you go to the re.al explorer and head to the transactions section, you will see at the very top the total number of transactions that happen in the past 24h, as well as total value of all transaction fees, as shown below in the screenshot taken on July 22nd 2024.
You can also head to the revenue dashboard and check the weekly revenue from chain fees, as shown below for the week from July 15th to July 22nd 2024.
{% hint style="info" %} Note that for that week, the chain fees represent 5.94% of all the fees distributed to veRWA holders. {% endhint %} ### Revenues from the Tangible RWA store Tangible store is the place where all Real World Assets are handled. Currently, Tangible is only dealing with USTB and basket tokens. If USTB isn't generating any revenue for the veRWA holders directly, basket tokens are. In fact, basket tokens ([UKRE](/re.al-community/tangible/what-is-ukre.md) for now) is earning yields from renting the real estate that backs the $UKRE token. From this rental yield, 10% is directly directed to veRWA holders. For now, the circulating $UKRE represents only $171,127.85 (as of writing on July 22nd 2024), with an average APR of 12.4%. This only generated $32.74 for veRWA holders for the week of July 15th to July 22nd, and represents only 0.03% of all revenues. {% hint style="info" %} The math behind the basket revenue is straightforward. There's $134,941.49 of real estate generating 12.4% APR, which is $16,732 (134,941 x 0.124) of revenue every year, or $322 every week ($16,732 / 52). Only 10% is going to veRWA holders, which is $32.2 roughly. {% endhint %} However, Tangible currently holds $41,288,770.13 of real estate that can be sold as basket tokens. Assuming all real estate is sold as UKRE tokens, this could generate potentially $9,845 every week to veRWA holders. {% hint style="info" %} The rental yield is first converted to reETH before being distributed to veRWA holders. {% endhint %} ### Revenues from the Pearl Exchange Pearl exchange is sending 2 different sources of revenue to veRWA holders * 10% of the users' rewards from Trident ALM * 20% of CAVIAR rewards All the liquidity managed by the Trident ALM (**A**utomated **L**iquidity **M**anager) is earning PEARL rewards that liquidity providers earn and can claim whenever they want. However, 10% of these rewards are actually redirected to veRWA holders. Caviar rewards are solely from bribes paid by the different protocols and by skimming the rebases from the different rebasing tokens on Pearl. 20% of these rewards are sent to veRWA holders. The epoch 30 on Pearl Exchange directed $1,251.88 of Caviar rewards to veRWA holders, as well as $2,242.90 from the Trident ALM. This was done with $3,328,986.43 in total liquidity on Pearl for that epoch (from July 10th to July 17th). {% hint style="warning" %} Estimating future revenues from the Pearl exchange is challenging, as weekly revenues can vary greatly based on swapped volume and potential bribes paid by protocols. However, it is easy to understand that if the TVL on Pearl grows, the revenue paid to veRWA holders will also grow. {% endhint %} {% hint style="info" %} As for Tangible, the revenue redistributed to veRWA holders is done in reETH. {% endhint %} ### Revenues from the Stack CDP Stack is a CDP (**C**ollateralized **D**ebt **P**rotocol) where users can deposit their crypto assets as collateral, and borrow the $MORE stablecoin against their assets. The loan's variable interest rate depends on the dollar value of the $MORE token. 50% of the interests that are paid to the protocol are partially redistributed to veRWA holders, paid in reETH. Between July 15th and July 22nd, Stack fees distributed to veRWA holders were amounting $2,137.95, representing 1.85% of all revenue from the revenue distributed as dividends. These fees were generated from $827,670 of loan with an average interest rate of a bit more of 13% for the period. {% hint style="warning" %} Once again, it is pretty complicated to estimate the revenue from Stack, as people may borrow more, or repay their loan, which will directly change the interest rates as well as the total loaned. However, if there's more $MORE borrowed, the interests redirected to veRWA holders will be higher. {% endhint %} ### Revenue from the Arcana protocol The Arcana protocol is using USTB deposited as collateral to run complex delta-neutral investment strategies to earn yields. In exchange, users who deposit USTB on the protocol receive arcUSD, a stablecoin that they can either use on the chain, stake, or exchange for the underlying USTB. The yields earned from the investment strategies are paid to arcUSD users in the form of rebase, but 5% of the yields are also directed to veRWA holders. Between July 15th and July 22nd 2024, Arcana paid $207.75 to veRWA holders from $2,155,473 of AUM (**A**ssets **U**nder **M**anagement) with an average APR of 10.02%. {% hint style="info" %} This revenue is easier to predict as the underlying strategy's revenue is clearly displayed on the Arcana website and is fairly consistent. If the Arcana TVL grows while the APR remains the same, it's clear to see that the revenue shared with veRWA holders will also grow. {% endhint %} ### RWA built-in trading fee The RWA token has a built-in trading fee, meaning that whenever a user is buying or selling RWA on the re.al chain, 2% of the amount being exchanged is sent to the veRWA holders. Between July 15th and July 22nd, the activity for the RWA token has been pretty intense, totalling a glorious $102,801.89 of royalties redistributed to veRWA holders in the form of RWA tokens this time. This was a pretty active week and there is no guarantee that the following weeks will bring that much revenue in the form of RWA royalties. ## Future Sources of Revenue You will quickly realize that all the different sources of revenue mentioned in this page are ALL the existing dApps on the re.al chain. In fact, every protocol that is building on re.al is highly incentivized to redirect a portion of its revenue to the chain so that it can be redistributed to veRWA holders. In the future, as the TVL of the chain grows and more applications are deployed, the chain's dividends will increase, providing greater earnings for veRWA holders. ## The Metrics Monitor The [RWA metrics](https://www.re.al/app/rwa-metrics) is a special page on the re.al dApp that will clearly show different important metrics about RWA. This document presents the details behind the `Yield Sources` widget.
You will find many other important information on this page * The average APY of the veRWA token, paid in reETH and RWA * The total amount of fees collected on the chain, broken down by source * The total amount of RWA tokens burnt, which is very important as the less RWA token, the higher APY for veRWA holders * The RWA lock rate (or in other words, the proportion of RWA tokens locked in veRWA) ## Disclaimer This page is only presenting the different sources of revenue for the chain, and what is being redistributed to veRWA holders. This is not an endorsement of the veRWA token, nor a suggestion to buy RWA and lock it. This collection of documents is not to be used as financial advice, it solely represents the view of the author of this documentation and does not involve anyone in the Re.Al, Tangible or Pearl teams. If you decide to invest into veRWA, do it at your own risks, and make sure you performed some due diligence. As always with crypto, only invest what you are ready to lose. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://real-community.gitbook.io/re.al-community/re.al/earning-from-verwa.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.