Value Capture (Buyback Flywheel)
The LDY token is designed as a value capture asset: as the protocol grows, real yield generated from the RWA portfolio flows back to LDY stakers.
Yield does not come from emissions or inflation. It comes from performance fees generated by real economic activity.
How the Flywheel Works
Users deposit stablecoins (USDC / EURC) into Ledgity vaults
The collateral is allocated to short-duration, diversified RWA strategies
These assets generate real cash flows (yield)
The protocol collects performance fees on that yield
Fees are used to buy LDY on the open market
Purchased LDY is distributed to stakers (veLDY) or burned, depending on governance decisions
Deposits → Real Yield → Fees → Buybacks → Distributed to stakers → More incentive to stake & holdThis links protocol growth → token demand → staker rewards directly.
Fee Flow Structure
1
Performance fees collected
A fixed % of yield generated from the portfolio
2
Fees sent to FeeCollector
Held transparently in stablecoins
3
BuybackManager executes buys
Purchases LDY from the open market
4
LDY is allocated to two pools
veLDY Community Pool & veLDY Council Pool
Allocation Breakdown
veLDY Community Pool
80%
Distributed to users who stake LDY and contribute to governance
veLDY Council Pool
20%
Aligns Council incentives with long-term protocol performance
Stakers always receive the majority of value capture.
Why This Model Is Sustainable
Real yield → No inflation
Rewards do not dilute holders
Buybacks come from revenue
Higher TVL = higher buyback pressure
veLDY locking reduces circulating supply
Creates natural supply scarcity
No reliance on speculative incentives
No “farm and dump” dynamics
Economic Impact
TVL Growth
Increases buyback volume
Higher Staking Participation
Reduces circulating supply & increases governance weight
Protocol Longevity
Reinforces token utility and long-term alignment
In other words:
The more the protocol is used, the more LDY is bought, locked, and distributed to aligned participants.
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