Revenue Share Model

Definition ∞ A Revenue Share Model in the digital asset space describes a system where a defined portion of the income generated by a protocol, platform, or decentralized application is distributed among its token holders or active participants. This model is often designed to incentivize active engagement and foster long-term commitment to the ecosystem. It aims to align the economic interests of the platform with its community.
Context ∞ The implementation and perceived fairness of revenue share models are frequently discussed topics within the context of tokenomics and decentralized autonomous organizations (DAOs). News reports often analyze how different models affect token value, influence community governance decisions, and contribute to the long-term sustainability of decentralized projects. This impacts investor sentiment and participation.