Definition ∞ Value accrual describes the process by which a digital asset or protocol increases in perceived or realized worth over time. This can stem from various factors, including increasing network utility, growing user adoption, scarcity, or the implementation of value-capture mechanisms within the protocol’s design. Understanding how value accrues is fundamental to assessing the long-term economic viability and investment potential of digital assets. It signifies a sustained increase in economic significance.
Context ∞ Discussions regarding value accrual in digital assets are central to debates about tokenomics and the sustainability of decentralized protocols. Current analyses often focus on mechanisms like fee burning, staking rewards, and protocol revenue sharing as drivers of value. Key debates involve identifying the most effective and sustainable models for value accrual that align incentives for all network participants and foster long-term growth.
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