Revnets
Loading...INVENTED BY JUICEBOX
Revnets function as a governance mechanism by using an onchain cap table to enable transparent, decentralized participation and revenue generation without governance or management overhead.
Invented by Jango and other Juicebox contributors (Robert Leonhard, JohnnyD, Wraith, Nowonder), revnets are built on the Juicebox v4 protocol—a crypto fundraising and DAO management platform. Structured as a Delaware-based LLC that invests in $REV tokens, this open-source mechanism focuses on providing a transparent and cost-efficient funding model that enables broad participation and revenue generation that can be used to address monetization, competitive advantage, and dependency dilemmas.
This mechanism is a good fit for leaders, creators, and investors looking to bootstrap and sustain projects without the burdens of active oversight. According to Jango, it serves as a hands-free, all-in-one growth engine which resolves the tension between open source productivity and private value capture.
Revnets enforce three main rules that are preset and can change over time. First, there is always a set price at which the revnet issues new $TOKENs. If an Automated Market Maker (AMM) offers a better rate than the issuance price, incoming funds are redirected to the AMM. This rate can also be adjusted over time. The second rule concerns the $TOKEN split, allowing a percentage of purchased tokens to be allocated to a privileged account, with the split percentage customizable at set intervals. The final rule allows $TOKENs to be returned to the revnet for a share of its revenue, with a tax that increases the value of future cash-outs and rewards long-term holders.
Additionally, users can leverage $TOKENs as collateral to access loans, which can be repaid over time to regain the tokens. If the loan is not repaid, the collateral is liquidated by the provider. Repayment can last up to 10 years, and borrowers can choose different options, such as paying over time, pre-paying at half the cost, or a combination. Each loan from revnets incurs a 2.5% $NANA fee and a 0.5% $REV fee, which are used to fund the revnets issuance or buyback of $TOKENs.
Apart from the initial parameter settings, there is no governance interference, alleviating the risk of associated inefficiencies and funding take-overs.
Open markets boost liquidity and minimize opportunities for market manipulation. Utilizing automated market makers ensures efficient management of this liquidity.
Revnets operate across various EVM-compatible networks, allowing token transfer between chains. They can also grow to accept money on new EVM compatible networks.