Economic Mechanisms

The Economic Flywheel 🔄

Fintech AI’s self-sustaining growth model is encapsulated by its Economic Flywheel. The mechanism works as follows:

• Reward Rate and Bond Sales: Drive supply growth.

• Supply Growth: Exerts downward pressure on the market price.

• Price Decline: Reduces the premium above the RFV, eventually triggering a price recovery.

• Price Increase: Fuels further bonding and increased APY rewards, which then drive more staking. This positive feedback loop creates a resilient economic environment where all participants benefit from collective cooperation.

APY, RFV, and Premium Above RFV 📈

The Annual Percentage Yield (APY) in Fintech AI is dictated by a combination of factors:

• Staking Participation: Higher staked percentages generally lower APY as the protocol matures.

• Risk-Free Value (RFV): Each token is backed by a reserve asset, ensuring a baseline value.

• Premium Above RFV: Reflects market sentiment and investor confidence. A premium indicates robust internal coordination and economic productivity.