2. Positive Economic Feedback Loop

RAI strategically applies policy levers to create a self-reinforcing, positive economic loop that supports sustainable growth:

• Supply Growth Increased staking and bonding contribute more RWA and stablecoins to the treasury, thereby boosting the protocol’s Risk-Free Value (RFV) backing.

• Price Stability

  • When the price of RAI falls, bonding becomes more attractive users buy discounted RAI, supporting treasury reserves.

  • When the price rises, staking becomes more appealing users lock tokens, reducing circulating supply and creating upward price pressure.

• Demand Increase

  • High APY rates attract new staker, increasing token demand, reinforcing token value, and boosting market confidence.

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This cycle enables RAI to withstand downturns typical in DeFi and serve as a bridge between digital market dynamics and real-world asset value.