Dymension is reshaping how creators generate revenue with the launch of RollApp Royalties, a mechanism tied to the platform's Initial RollApp Offerings (IRO) and RollApp token transactions. This model offers creators a significant incentive while aligning network-wide goals of sustainability and participation.
How RollApp Royalties Work
Whenever users trade IRO or RollApp tokens, a transaction fee is applied. This fee is then split into two equal components:
50% Royalties for Creators
Half of the fee is immediately distributed as royalties to the wallet of the RollApp creator. This provides a continuous, on-chain cash flow directly tied to the success of the creator's ecosystem.50% Token Burn for DYM
The other half of the fee is used to burn DYM tokens, reducing the circulating supply and fostering deflationary pressure. This mechanism benefits the broader Dymension ecosystem by increasing the value of DYM over time.
An Alternative to Traditional Tokenomics
RollApp Royalties, alongside Dymension's Sponsorships program, create a sustainable and innovative alternative to traditional Layer 2 tokenomics. Instead of relying solely on inflationary rewards or funding, these models incentivize creators to build thriving RollApps that directly benefit users.
Sponsorships allow validators and operators to support RollApps while earning rewards for providing infrastructure and operational support. Together, Sponsorships and Royalties create a two-pronged approach to incentivizing and rewarding contributors, ensuring long-term network health and active participation.
Benefits for Creators and Users
For Creators
Continuous Revenue Stream: Creators earn royalties from token activity, ensuring consistent income without relying on upfront funding.
Aligned Incentives: The fee structure encourages creators to grow their RollApps, benefiting the broader Dymension ecosystem.
For Users
Deflationary Pressure: DYM token burns ensure long-term value for holders.
Enhanced Ecosystem: As creators and validators are incentivized, users benefit from more robust and innovative RollApps.
What’s Next?
Creators and users can explore RollApp Royalties now through the Dymension Playground. With this feature already live in testing and set to expand with the upcoming mainnet 3D upgrade, the Dymension network is steadily pushing the boundaries of modular blockchain innovation.
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