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. Context ∞ Value capture mechanisms are a critical aspect of tokenomics and are frequently debated when assessing the economic sustainability of blockchain protocols. Discussions often focus on how effectively a protocol can distribute value to its stakeholders and incentivize continued participation. The design of these mechanisms directly influences a network’s ability to thrive and expand.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
