Bonding

Bonds are a mechanism by which the protocol itself can trade its native token in exchange for assets. Instead of renting liquidity from third parties, it purchases them outright. Once the bond is created, the protocol owns those assets and, like liquidity mining, has distributed new supply.

Through bonds, protocols can accumulate the crucial infrastructural liquidity that they generally service via liquidity mining. Instead of renting that liquidity (often at astronomical interest rates), they simply purchase it, turning a value-draining perpetual expense into revenue-producing assets that facilitate the functionality of the rest of the platform.

Our innovation: "Bond-to-Pay"

What happens when purchase liquidity is used to create new token emissions which don't go to the user, but to the DAO treasury? What if the treasury then awards part of this newly minted token supply to the user who made the purchase? This is what we believe can be the future of Value-Backed token rewards.

How does it work?

A user, incentivised by the highest discount option available to purchase his stay or experience, will be driven to "Bond-to-Pay".

Bond-to-Pay implies a user deposits liquidity into the treasury to pay for the purchase, not demanding SWIX at a discount rate since what he expects in returns is solely to receive access to his stay or experience.

This leaves the protocol treasury with the newly minted token supply. What happens to these tokens? The community will be able to choose.

A feasible option which will be initially introduced by the Founding Swixies is going to be to award a small percentage of those tokens as a reward to the platform user.

The remaining tokens can be either:

• Held in the DAO treasury for future grants, core contributors, airdrops, liquidity mining incentives, or anything else deemed valuable by the Swix community.

• Burned to create a deflationary effect

Not only would this function enable for a sustainable token reward model, it goes as far as enabling SWIX stakers to retain purchasing power towards their most important need, a home.

By backing newly generated token emissions with revenue generated by physical, real-world properties, the DAO treasury would benefit from increasingly greater cash flows as property values increase. Data shows that rental prices increase more than proportionately against property valuations; this means each SWIX token will see its underlying collateralising value increase the more property prices increase.

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