Core Foundation Launches Rev+ Revenue Sharing for Web3 Industry

The Core Foundation, the organization behind the Core blockchain, has launched a new revenue-sharing mechanism for the Web3 industry. This initiative aims to revolutionize how stablecoin issuers and developers raise funds. The program, known as Rev+, is the first protocol-level initiative that directly rewards 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. The Core blockchain, being the first Ethereum Virtual Machine (EVM)-compatible Bitcoin staking protocol, will facilitate this by awarding recurring revenue to issuers through direct payouts after transactions or through a revenue-sharing pool.

The revenue-sharing pool will be determined by the level of contribution to the Core blockchain, considering factors such as total transaction count, new unique addresses, notional value, and total transaction fees generated. The pool will be distributed among participating partners during each cycle. While the pool may be modest at launch, Rev+ establishes a sustainable, usage-based monetization model designed to grow with Core’s network, as noted by Rich Rines, an initial contributor to Core DAO.

This initiative aligns with calls from industry leaders, such as Cardano founder Charles Hoskinson, for more collaborative economic incentives within the Web3 industry. Hoskinson has previously highlighted the need for a cooperative equilibrium to compete with centralized tech giants entering the Web3 space. The decentralized finance (DeFi) industry's "circular economy" often results in the rally of one cryptocurrency being bolstered by funds exiting another token, limiting overall industry growth. Hoskinson emphasized the importance of finding tokenomics and market structures that allow for cooperation rather than adversarial competition.

Core DAO's new revenue-sharing model represents a significant development in the stablecoin industry. By integrating revenue-sharing mechanisms at the protocol level, Core DAO addresses the issue of misaligned incentives between stablecoin issuers and developers. This model ensures that both parties have a vested interest in the success and stability of the stablecoin, fostering a more collaborative and sustainable ecosystem. The strategic move by Core DAO is expected to enhance the stability and growth of stablecoins, leading to a more robust and resilient stablecoin ecosystem that benefits all stakeholders involved.