What is the 50/50 mechanism, and how does it benefit token holders?

Learn how RentFi’s innovative 50/50 mechanism reinvests rental profits to reward token holders with passive income while boosting token value through scarcity.
Written by RentFi Team
Updated 9 months ago

RentFi’s 50/50 mechanism is a sustainable and innovative strategy that reinvests 100% of net rental profits back into the ecosystem. It ensures consistent revenue for token holders while driving long-term value through token scarcity.

How the 50/50 Mechanism Works:

50% for Passive Income:

  • Half of the monthly net rental profits are used to buy RENT from the market.

  • These tokens are redistributed as revenue to eligible holders.

  • This process creates a steady, passive income stream for long-term holders.

50% for Token Burning:

  • The other half of rental profits is used to buy RENT from the market and burn them.

  • This deflationary mechanism permanently reduces the circulating supply, increasing scarcity and long-term value.

Benefits of the 50/50 Mechanism for Token Holders:

Regular Passive Income:

  • Eligible holders earn consistent monthly income without active management.

Increased Token Value:

  • The burn mechanism reduces supply over time, raising token scarcity and value as demand grows.

Continuous Market Demand:

  • Recurring buybacks create ongoing buying pressure, stabilizing token prices and reducing volatility.

Long-Term Growth Alignment:

  • Both monthly income and token scarcity encourage long-term holding, benefiting committed investors.

Why the 50/50 Mechanism Matters:

The 50/50 mechanism creates a self-sustaining feedback loop where:

  • Rental profits fuel continuous revenue and token buybacks.

  • Token burns ensure supply decreases, increasing scarcity and long-term value.

By reinvesting 100% of rental profits, RentFi strengthens token value, offers monthly income to its community, and builds a sustainable ecosystem for both current and future token holders.

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