Transforming Revenue Dynamics: Unveiling $eRSDL Tokenomics

Residual Token, Inc.
4 min readJan 5, 2024

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To the dynamic world of utility tokens, Residual Token introduces eRSDL, a groundbreaking token designed to apply the blockchain’s base use case as a ticketing system to manage advisory revenue and software licensing fees across a variety of projects. This exploration delves into the intricacies of eRSDL’s tokenomics, unveiling a novel approach that not only acts to advance licensing and services revenue management, but also alleviates the working capital pressure on high-end advisory services and R&D intensive products.

eRSDL is like the shuttle of a loom, creating an immutable pattern as it crosses from our main operating wallet to burn wallets or distributed as loyalty rewards to community members.

Tokenomics Overview

eRSDL operates as part of a web3 ecosystem, where tokens are purchased out of the market using excess income from advisory service projects and from licensing software. A versatile tool involving market purchases, token burning, and loyalty reward distribution, creating a symbiotic relationship between eRSDL’s utility and financial aspects.

Market Buyouts and Burning

— Employed as a licensing tool, enabling the acquisition and proportional burning of tokens based on license length.

— For services rendered, the company strategically buys tokens from the market, burning half and distributing the remaining half as loyalty rewards.

Let’s go through an example.

Innovative Revenue and Engagement Forecast

eRSDL’s revenue and engagement forecast stands out with its dynamic elements. Let’s assume that:

  • Average revenue per engagement begins at $40,000 and doubles every 6 months.
  • Engagement number starts at 3 per month and doubles every 3 months, capped at 25 per month.
  • Each engagement spans 3.5 months, providing a unique rhythm to revenue generation.

Below, we will go through how many tokens are out there, and how much it will cost to buy/burn all the tokens using very simplified assumptions.

Tokenomics and Supply Dynamics

  1. Total Token Supply:
    — The total supply of $eRSDL stands at 450 million tokens, setting the stage for a carefully calibrated economic model.
  2. Burn Target and Token Purchase Calculation:
    — Assuming a burn target cost of $0.25 per token, the company plans to purchase and burn 810 million tokens, totaling $202.5 million.
    — Half of these tokens (405 million) will be destroyed, and the other half will be distributed as loyalty rewards.
  3. Months to Achieve Burn Target:
    — Calculating the timeline reveals that, with the dynamic growth in engagements and revenue, it would take approximately 62.5 months to generate $200 million, coinciding with the burn target.

Unlocking Financial Agility and Working Capital Alleviation

The unique dynamics of $eRSDL’s tokenomics bring about a paradigm shift in revenue generation strategies. By continually adapting to market conditions and engagement dynamics, this approach not only advances licensing and services revenue but also offers relief from the traditional working capital pressures associated with providing high-end advisory services.

Example Scenario

Consider a consultancy firm providing advisory services with the traditional revenue model. The upfront costs and working capital required often make constant capital raising or factoring receivables a neccessity. In contrast, leveraging $eRSDL allows us to use our revenue forecast to manage cash flow, smoothing realization timing. This innovative approach provides a buffer against the typical financial strain associated with delivering high-end advisory services.

Conclusion

Unraveling the tokenomics of $eRSDL showcases a strategic interplay between utility and financial dynamics, offering a novel path to revenue generation. As we navigate this innovative landscape, the synergy between licensing advancements, service revenue growth, and working capital alleviation, coupled with the strategic burn target and market purchase strategy, underscores the depth of Residual Token, Inc.’s pioneering approach in the token ecosystem.”

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Residual Token, Inc.

We're a technology company specializing in the development and marketing of DeFi software for the global blockchain ecosystem.