Asset Tokenomics

Fundamentals

Valuit's tokenomics are structured to provide a robust, transparent, and efficient system for managing tokenized assets. Our tokenomics model is underpinned by several key principles:

Asset-Backed Tokens

• Each token issued on the Valuit platform is backed by a tangible real-world asset, ensuring intrinsic value and stability.
• This includes a variety of asset classes such as real estate, private equity, and revenue-generating businesses.
• Asset-Backed Tokens

Regulatory Compliance

• Tokens are issued in full compliance with relevant financial regulations, ensuring legal security and investor confidence.
• Valuit adheres to standards set by MiCA and other regulatory frameworks, providing a transparent and compliant environment.

Token Utility

• Tokens serve multiple purposes including investment, liquidity provision, and governance.
• Holders can participate in voting on key decisions, ensuring a democratic and transparent process.

Security and Transparency

• Advanced encryption and security protocols protect token holders and their assets.
• All transactions and token movements are recorded on the blockchain, providing an immutable ledger.
• Regular audits and performance reports maintain transparency and trust.

Asset Token Valuation Mechanism

Market-Based Valuation:

• Tokens are priced based on real-time market data reflecting current demand and supply.
• Valuit integrates advanced analytics to continuously update asset valuations, ensuring market-aligned pricing.

Income-Based Valuation:

• Valuation based on the income generated by the asset, such as rental income or business revenue.
• Discounted Cash Flow (DCF) analysis is utilized to estimate the present value of future cash flows, providing a reliable income-based valuation.

Comparable Sales:

• Valuation is also derived by comparing similar assets that have been recently sold or tokenized.
• Adjustments are made for differences in asset characteristics and market conditions, leveraging comprehensive market data and analytics.

Factors Affecting Token Value:

Asset Performance:

• The intrinsic quality and performance of the underlying asset directly influence token value.
• Regular performance reports and updates are provided to maintain transparency and investor confidence.

Market Sentiment:

• Investor confidence and broader market trends play a significant role in token prices.
• Valuit offers tools for tracking and analyzing market sentiment to help investors make informed decisions.

Regulatory Environment:

• Compliance with regulatory standards enhances trust and stability.
• Valuit's proactive approach to regulatory changes ensures ongoing compliance, positively impacting token valuations.

Economic Factors:

• Macroeconomic conditions such as interest rates, inflation, and economic growth affect asset values and, consequently, token prices.
• Valuit monitors these factors closely to provide timely insights to token holders.

Impact of Market Volatility

Influence of Market Changes:

1. Economic Factors:
   • Macroeconomic conditions, such as interest rates and inflation, impact the underlying asset values, thus affecting token prices.
   • Valuit continuously monitors these factors to provide timely updates and insights.
2. Market Liquidity:
   • High liquidity generally stabilizes prices, whereas low liquidity can lead to significant price fluctuations.
   • Valuit ensures high liquidity through strategic partnerships and robust secondary market integrations.
3. Investor Behaviour:
   • Changes in investor sentiment can cause volatility in token prices.
   • Valuit's platform provides real-time data and alerts to help investors navigate market sentiment shifts.
4. Regulatory Changes:
   • Sudden changes in regulations can impact market conditions and token values.
   • Valuit keeps abreast of regulatory developments to mitigate risks and adapt strategies accordingly.

Risk Management Strategies:

1. Diversification:
   • Diversifying investments across different assets mitigates risk.
   • Valuit offers a variety of tokenized assets, allowing investors to build a diversified portfolio.
2. Hedging:
   • Financial instruments are used to offset potential losses.
   • Valuit provides access to hedging tools and strategies, helping investors protect their investments.
3. Regular Monitoring:
   • Continuous monitoring of market conditions and asset performance is essential.
   • Valuit’s platform features automated alerts and detailed reporting to keep investors informed.
4. Stablecoins and Safe-Haven Assets:
   • Utilizing stablecoins and other safe-haven assets to hedge against volatility.
   • Valuit supports stablecoin transactions and provides access to secure, low-volatility assets.

Liquidity and Market Making

Ensuring Liquidity:

1. Secondary Market Integration:
   • Valuit lists asset tokens on multiple secondary markets, including DeFi protocols, DEXs, and CEXs.
   • This wide market access enhances liquidity and provides numerous trading opportunities.
2. Liquidity Pools:
   • Valuit manages liquidity pools to facilitate smooth trading.
   • Incentives are provided for liquidity providers, ensuring consistent market depth and activity.
3. Buyback Programs:
   • Valuit may implement buyback programs to support token prices and provide additional liquidity.
   • These programs ensure that there is always a buyer for tokens, enhancing investor confidence.

Role of Market Makers:

1. Continuous Pricing:
   • Market makers provide continuous bid and ask prices, ensuring stable and reliable markets.
   • Valuit collaborates with professional market makers to maintain liquidity and market stability.
2. Reducing Spread:
   • Market makers help narrow the bid-ask spread, improving trading efficiency and reducing transaction costs.
   • Active market making practices ensure tighter spreads and better trading conditions.
3. Volume Support:
   • Ensuring sufficient trading volume is crucial to prevent large price swings.
   • Valuit’s market makers contribute to maintaining balanced and active trading volumes, supporting overall market health.
4. Order Book Management:
   • Market makers manage order books to ensure there is always sufficient depth for large trades.
   • This reduces the risk of price manipulation and enhances market reliability.