Core Foundation Launches Rev+ Revenue Sharing for Stablecoin Issuers

The Core Foundation, the organization behind the Core blockchain, has launched a groundbreaking revenue-sharing mechanism aimed at transforming how stablecoin issuers and developers raise funds within the Web3 industry. This new program, known as Rev+, is designed to directly reward developers, stablecoin issuers, and decentralized autonomous organizations (DAOs) based on the user value they create. Once operational, Rev+ will enable projects to earn revenue from user-generated gas fees on their blockchain applications, providing a sustainable revenue stream for developers who previously had to launch cryptocurrencies to fund their projects.

According to Hong Sun, the institutional lead at the Core Foundation, stablecoins now account for over one-third of DeFi revenue. However, issuers do not currently earn revenue from transaction activity. Rev+ aims to change this by aligning incentives so that projects powering Web3 are compensated when their tokens are in use. This innovative approach could significantly alter the landscape of stablecoin issuance and development, fostering a more collaborative and mutually beneficial ecosystem.

The Core blockchain, the first Ethereum Virtual Machine (EVM)-compatible Bitcoin staking protocol, will facilitate this revenue-sharing model. Transactions triggered by Core smart contracts, such as stablecoin swaps, moving collateral, or using a vault, will award recurring revenue to issuers through direct payouts after transactions or through a revenue-sharing pool. The revenue-sharing pool will be distributed among participating partners during each cycle, based on factors such as total transaction count, new unique addresses, notional value, and total transaction fees generated. While the pool may be modest at launch, Rev+ establishes a sustainable, usage-based monetization model designed to grow with Core’s network.

This development comes at a time when industry leaders, such as Cardano founder Charles Hoskinson, have called for more collaborative economic incentives to compete with centralized tech giants entering the Web3 industry. Hoskinson has highlighted the adversarial nature of the current tokenomics and market structure in the cryptocurrency space, which often limits industry growth. The introduction of Rev+ by Core DAO aligns with this call for collaboration, offering a model that could set a new standard for how stablecoins are issued and managed.

The revenue-sharing model introduced by Core DAO is expected to have a significant impact on the stablecoin industry. By providing a clear incentive structure that benefits both issuers and developers, this model could encourage more developers to build on the Core DAO platform. This, in turn, could lead to greater innovation and competition in the stablecoin industry, ultimately benefiting users and investors. The model is also expected to create a more sustainable ecosystem, as both parties would have a direct stake in the success of the stablecoins issued on the platform. This could lead to greater collaboration and innovation, as both parties would be incentivized to work together to create more successful and sustainable stablecoins.