Economics
Value Capture Mechanisms
Competitive Edge
The competitive edge stems from the provision of services with rewards for the users and the collection of fees by the Dapp. The key advantages of the value chains applied by Plenny can be distinguished as follows, depending on the type of economy:
Non-financial digital economy:
- Using Plenny allows participating nodes to provide channel capacity at a viable cost-benefit ratio while earning income as Liquidity Makers and Oracle Validators.
- Exchanges, retail users, trading operations, and miners benefit from Plenny when connecting their Lightning Nodes infrastructure, and thus benefit from additional liquidity to generate additional returns on their capital locked up in payment channels on the LN.
Decentralized financial economy:
- Liquidity Providers (LPs) use automated market maker (AMM) protocols to provide liquidity via decentralized markets and benefit from liquidity staking (i.e. Fish Farming) on the Dapp while supporting the token price.
- Cash management operations via the RePLENishment Trigger and the Treasury HODL (i.e. burning and buybacks) support the token price.
