5.5 Wicrypt Revenue Streams & Value Accrual
Wicrypt economy is based on multiple revenue streams and value accrual policy obtained either through redistribution of profits through token-based rewards (described previously) or by proactive approach to buybacks and burning or redistributing in a form of ad-hoc rewards (airdrops, promotional campaigns etc).
Please refer to the chart below for better overview of Wicrypt revenue streams and fiscal strategy:
Wicrypt revenues and value accrual
As visible above, a major part of Wicrypt revenue stream is based on host revenue. The reason it’s not presented as a fee charged on a transaction between host and user is because Wicrypt business model is not scalable through the number of transactions per se, but rather the amount of data sold. As a result, it makes far more sense to apply commission fees on Host’s revenues rather than on the transacted tokens.
Part of the revenues are transferred back to reserves from where they are proactively managed by Wicrpyt DAO and used for buybacks, redistribution or burn, depending on ongoing needs and current market situation.