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The Core Foundation has unveiled Rev+, a groundbreaking revenue-sharing model designed to revolutionize funding for stablecoin issuers and Web3 developers. This initiative aims to provide a sustainable income stream by allowing projects to earn revenue from user-generated gas fees on their blockchain applications, addressing a critical need for alternative funding mechanisms beyond cryptocurrency launches.
Core Foundation Unveils Rev+: A Game-Changer for Web3 Revenue
The Core Foundation, the entity behind the Core blockchain, has introduced Rev+, a pioneering revenue-sharing mechanism for the Web3 industry. This program is set to transform how stablecoin issuers and developers secure funding by directly rewarding them based on the user value they create. Rev+ is touted as the first protocol-level program of its kind.
How Rev+ Generates Revenue
Rev+ operates by allowing projects to earn revenue from gas fees generated by users interacting with their blockchain applications. This mechanism provides a sustainable revenue stream, a significant departure from the previous reliance on launching cryptocurrencies for project funding.
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Direct Payouts: Transactions triggered by Core smart contracts, such as stablecoin swaps or collateral movements, will result in recurring revenue for issuers through direct payouts.
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Revenue-Sharing Pool: A portion of the revenue will be distributed from a shared pool. This pool's distribution is based on a project's contribution to the Core blockchain, considering factors like total transaction count, new unique addresses, notional value, and total transaction fees generated.
Hong Sun, Institutional Lead at the Core Foundation, highlighted the current disparity: "Stablecoins now account for over one-third of DeFi revenue, yet issuers do not earn revenue from transaction activity. Rev+ will change that by aligning incentives so that the projects powering Web3 actually get paid when their tokens move."
The Need for Collaborative Economic Incentives
Industry leaders have long advocated for more collaborative economic incentives within the crypto space. Charles Hoskinson, founder of Cardano, has previously emphasized the need for the industry to move away from a "sum 0" adversarial model towards a "cooperative equilibrium" to effectively compete with centralized tech giants entering the Web3 arena.
The current "circular economy" in decentralized finance (DeFi), where funds often shift between tokens, can limit overall industry growth. Rev+ aims to foster a more collaborative environment by providing a direct, usage-based monetization model that grows with the Core network, as noted by Rich Rines, an initial contributor to Core DAO.
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