Economic Model
Locale Network's economic model is built on real utility, not speculation. The network operates through localized stablecoins and real-world asset (RWA) lending—no governance token is planned.
Locale Network does not have formal plans for a governance token at this time. The economic model focuses solely on utility-driven assets: localized stablecoins for local commerce and RWA-backed lending for community investment.
Core Economic Principles
Utility Over Speculation
| Principle | Implementation |
|---|---|
| Real Value | All tokens represent tangible value (USD-pegged stablecoins, RWA collateral) |
| Local Circulation | Economic incentives keep value circulating within communities |
| Transparent Reserves | All backing assets are verifiable on-chain |
| Community Ownership | Fees flow to community treasuries, not token holders |
Economic Components
- Transaction fees
- Lending interest
- Data monetization
- Protocol services
- Staking rewards
- Community treasury
- Data contributors
- Liquidity providers
Revenue Streams
Transaction Fees
Every transaction on City Chains generates small fees:
| Fee Type | Rate | Destination |
|---|---|---|
| Stablecoin Transfer | 0.1% | Community Treasury |
| Mint/Redeem | 0.05% | Community Treasury |
| Cross-Chain Bridge | 0.1% | Network Treasury |
Lending Spreads
Locale Lending generates yield through interest rate spreads:
| Component | Description |
|---|---|
| Pool Yield | Interest paid by borrowers |
| Management Fee | 0-2% annual fee on TVL |
| Performance Fee | 0-20% of realized gains |
Data Marketplace
L{CORE} enables micropayments for verified IoT data:
| Data Type | Typical Price |
|---|---|
| Air Quality | $0.001 per reading |
| Traffic Patterns | $0.01 per hour |
| Weather Data | $0.001 per reading |
Value Distribution
Community-First Model
Unlike traditional protocols that distribute value to token holders, Locale Network channels value back to communities:
- Local Treasuries — Each City Chain maintains its own treasury funded by local transaction fees
- Network Treasury — Cross-chain operations fund network-wide development
- Data Providers — IoT device operators earn for sharing verified data
No Extractive Tokenomics
| What We Avoid | What We Do Instead |
|---|---|
| Inflationary token rewards | Fee-based revenue sharing |
| Governance token voting | Template-based governance frameworks |
| Speculative token launches | Utility-first stablecoin deployments |
| VC token unlocks | Community-controlled treasuries |
Economic Sustainability
Self-Sustaining Model
The economic model is designed to be self-sustaining through:
- Transaction Volume — More commerce = more fees = larger treasury
- Lending Activity — More loans = more yield = community investment returns
- Data Economy — More devices = more data = micropayment revenue
Growth Flywheel
More Users → More Transactions → Larger Treasury → Better Services → More Users
Learn More
- Stablecoins — How local currencies work
- RWA Lending — Real-world asset backed lending
- Local Currency — Deep dive into local currencies