Core Blockchain Unlocks Revolutionary Revenue Sharing for Stablecoin Issuers

The cryptocurrency world is constantly evolving, seeking new ways to build sustainable ecosystems. For too long, Web3 projects, especially those building essential infrastructure like stablecoins, have struggled with consistent funding models, often relying on speculative token launches. But what if there was a way to create a perpetual income stream for the very builders and innovators driving the space forward? Enter the Core blockchain, which is poised to revolutionize this landscape with its groundbreaking Rev+ program.

Understanding Core Blockchain’s Revolutionary Revenue Sharing

The Core Foundation, the driving force behind the Core blockchain, is launching Rev+, a pioneering revenue-sharing mechanism designed to fundamentally alter how stablecoin issuers and Web3 developers secure funding. This isn’t just another grant program; Rev+ is claimed to be the first protocol-level initiative that directly compensates developers, stablecoin issuers, and even decentralized autonomous organizations (DAOs) based on the actual user value they generate. Imagine a system where the more your application is used, the more revenue you earn directly from transaction activity.

Traditionally, developers have often been compelled to launch their own cryptocurrencies to raise capital, a model fraught with volatility and often unsustainable in the long run. Rev+ aims to provide a much-needed alternative, offering a consistent and predictable income stream. As Hong Sun, institutional lead at the Core Foundation, aptly points out, “Stablecoins now account for over one-third of DeFi revenue, yet issuers do not earn revenue from transaction activity. Rev+ will change that by aligning incentives so that the projects powering Web3 actually get paid when their tokens move.” This direct alignment of incentives is a game-changer for the industry.

Why is Sustainable Funding Crucial for Web3 Developers and Stablecoin Issuers?

The Web3 ecosystem, while innovative, has faced significant challenges in establishing robust and sustainable funding models for its builders. Here’s why Core’s approach to revenue sharing is so vital:

• Reliance on Token Launches: Many projects rely heavily on initial coin offerings (ICOs) or other token launches, which are often one-time funding events. This creates pressure for quick returns and can lead to short-term thinking rather than long-term development.
• Lack of Recurring Revenue: Unlike traditional businesses with subscription models or product sales, many decentralized applications (dApps) and protocols lack a direct, recurring revenue stream from their usage.
• Volatile Market Conditions: The crypto market is inherently volatile. Projects funded solely by their native tokens can see their treasury values plummet during bear markets, hindering development and talent retention.
• Misaligned Incentives: When projects don’t directly benefit from the transaction volume or user activity they facilitate, there’s a disconnect between their value creation and their financial sustainability.

Rev+ addresses these issues head-on by creating a direct link between a project’s utility and its financial viability, offering a more stable foundation for the growth of essential Web3 infrastructure.

How Does Rev+ Work on the Core Blockchain?

The Core blockchain is unique as the first Ethereum Virtual Machine (EVM)-compatible Bitcoin staking protocol. This innovative architecture allows for smart contract functionality while leveraging Bitcoin’s security. The Rev+ program capitalizes on this by generating revenue through transactions triggered by Core smart contracts. This includes activities such as:

• Stablecoin swaps
• Moving collateral within DeFi protocols
• Utilizing decentralized vaults

Revenue is generated in two primary ways:

1. Direct Payouts: Issuers can receive direct payouts after certain transactions, immediately benefiting from user activity.
2. Revenue-Sharing Pool: A significant portion of the generated revenue flows into a shared pool. This pool is then distributed among participating partners during each cycle, based on their contribution to the Core blockchain’s ecosystem.

The contribution level for the revenue pool is determined by several key metrics, ensuring fairness and rewarding genuine impact:

• Total transaction count generated by the project.
• Number of new unique addresses interacting with the project.
• Notional value processed through the project’s applications.
• Total transaction fees generated by the project.

As Rich Rines, an initial contributor to Core DAO, explained, “While the pool may be modest at launch, Rev+ establishes a sustainable, usage-based monetization model designed to grow with Core’s network.” This long-term vision is critical for fostering enduring DeFi innovation.

Empowering Stablecoin Issuers and Web3 Developers with Sustainable Growth

The implications of Core’s Rev+ program for stablecoin issuers and Web3 developers are profound. For stablecoin issuers, who facilitate billions in daily transactions but historically haven’t directly profited from the underlying network activity, Rev+ offers a transformative business model. It validates their critical role in the DeFi ecosystem by directly rewarding their contribution to liquidity and transaction volume.

For developers, the program offers a lifeline away from the often-stressful cycle of fundraising through speculative token launches. A predictable revenue stream means:

• Enhanced Stability: Projects can focus on long-term development and user experience rather than constant fundraising.
• Attracting Talent: The ability to offer consistent compensation makes it easier to attract and retain top-tier development talent.
• Reduced Pressure: Less pressure to inflate token prices, allowing for more organic and sustainable growth.
• Innovation Focus: Developers can dedicate more resources to building, iterating, and innovating, knowing their efforts will be directly rewarded.

This shift could lead to a healthier, more robust Web3 ecosystem, where value creation is directly tied to financial reward.

Fostering DeFi Innovation Through Collaborative Economics

The philosophy behind Rev+ aligns perfectly with calls from prominent industry figures for more collaborative economic incentives within Web3. Cardano founder Charles Hoskinson has often criticized the prevailing “zero-sum” nature of crypto tokenomics, where the rally of one cryptocurrency often comes at the expense of another. He argues that this adversarial structure hinders the industry’s collective growth, especially when competing with centralized tech giants.

“The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0,” said Hoskinson. “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.”

Core’s Rev+ program embodies this cooperative equilibrium. By rewarding projects based on their utility and contribution to the overall network’s health, it encourages collaboration rather than competition. Projects building on Core are incentivized to create valuable applications that drive network activity, knowing that increased usage benefits everyone involved in the revenue-sharing pool. This collaborative model is essential for pushing the boundaries of DeFi innovation and ensuring the long-term viability of decentralized technologies.

The Future of Web3 Funding: A Sustainable Path Forward

Core’s Rev+ program represents a significant step forward in the evolution of Web3 funding models. By directly compensating stablecoin issuers and Web3 developers for the value they create, it lays the groundwork for a more sustainable, equitable, and collaborative ecosystem. This shift away from speculative fundraising towards usage-based revenue could unlock a new era of growth and stability for decentralized finance.

As the program matures and the Core blockchain network expands, the revenue-sharing pool is expected to grow, providing even more substantial incentives for builders. This innovative approach not only addresses critical funding challenges but also reinforces the core principles of decentralization and community value. It’s a clear signal that the industry is maturing, moving beyond hype to build foundational economic models that truly empower its participants.

Conclusion: A New Dawn for Web3 Builders

The introduction of Core’s Rev+ program marks a pivotal moment for the Web3 industry. By establishing the first protocol-level revenue sharing model for stablecoin issuers and developers, the Core blockchain is pioneering a path towards sustainable growth and collaborative economics. This initiative promises to free builders from the shackles of perpetual fundraising, allowing them to focus on what they do best: innovating and creating value. As the ecosystem embraces these more equitable and sustainable models, we can anticipate a future where DeFi innovation flourishes, driven by truly aligned incentives and a shared vision for a decentralized world. This is not just about earning money; it’s about building a better, more resilient Web3 for everyone.