Skip to main content

Value Capture

Definition

Value capture refers to the mechanisms by which a protocol or network accrues and retains the economic value generated by its operations. This can involve mechanisms like transaction fees, token burning, or staking rewards that direct value back to the protocol or its participants. Effective value capture is essential for the long-term sustainability and growth of decentralized ecosystems. It ensures that the creators and stakeholders benefit from the network’s success.