Revenue Model

Overview

The Checks Platform is built on a self-sustaining economic model that embeds incentives directly into its smart contracts. As adoption grows, activity across minting, trading, yield, and lending continuously generates revenue that circulates back into the ecosystem. This structure ensures ongoing funding for development, rewards for participants, and reinforcement of the long-term value of $CHECK. Unlike projects dependent on speculation, Checks creates durable cash flows that scale naturally with usage.

Primary Revenue Streams

Revenue streams are designed to be simple, transparent, and directly tied to platform activity. Each major interaction with the protocol contributes to the treasury in measurable ways:

• NFT Check Creation Fees: A small issuance fee is charged whenever a new check is minted, usually as a percentage of the secured assets. Every agreement created on-chain contributes value to the protocol.

• Yield Performance Fees: Profits from Auto-Investment and yield strategies are shared with the protocol. For example, if a Yield Check generates $100 in earnings, 10 to 20 percent may flow to the protocol while the rest remains with the user.

• AUM or Maintenance Fees: The DAO may vote to introduce minimal ongoing fees (for example, 0.5 percent annually) on yield-bearing balances, but only in contexts where users directly benefit from the service.

• P2P Lending Spread: For peer-to-peer lending, the protocol can capture a small portion of interest payments (for example, 0.2 percent), building a steady revenue stream as loan activity increases.

• Secondary Market Royalties: By integrating EIP-2981 royalties (suggested 0.5 percent), every secondary trade of NFT Checks, whether on Checks’ marketplace or external ones, feeds back into the ecosystem.

Together, these mechanisms ensure that minting, investing, lending, and trading all create revenue streams that grow with platform activity.

Fee Allocation and Distribution

Collected revenue is not left idle. Funds are directed toward initiatives that reinforce platform growth and token stability:

• Ongoing development, audits, and security upgrades.

• Rewards for Staking Check holders through direct distributions or token buybacks.

• Selective token burns that strengthen the value of $CHECK.

• Reserves that provide stability during risk events or market volatility.

This approach creates a compounding cycle: usage generates fees, fees fund growth and rewards, and rewards drive further usage and adoption. Over time, this cycle enhances both the protocol’s resilience and the value of its native token.

Polygon Advantages

Operating on Polygon ensures that micro-transactions such as payroll, recurring transfers, or high-frequency marketplace activity remain cost-efficient. Transaction fees on Polygon are a fraction of those found on Ethereum mainnet, allowing Checks to charge minimal percentages without diminishing user returns. This combination of low base costs and small protocol fees ensures that even the most routine or modest transactions remain viable and attractive on the platform.

Beyond affordability, Polygon provides the speed and scalability necessary for high-volume financial activity. Because the network can process thousands of transactions per second, the Checks Platform can accommodate everything from individual rent payments to large-scale institutional vesting schedules without bottlenecks. This high throughput means that small fees, applied consistently across many transactions, aggregate into meaningful and sustainable revenue streams without placing any noticeable burden on users.

Polygon also strengthens ecosystem connectivity. As a widely adopted layer-2 with bridges to Ethereum and other networks, it offers users access to liquidity, DeFi integrations, and tools already familiar to developers. This makes it easier for projects and businesses to adopt Checks without leaving their existing environments, while also giving users confidence that their assets are compatible with the broader crypto economy. Combined with Polygon’s commitment to sustainability and future scaling improvements, the partnership creates a robust foundation for Checks to expand while maintaining cost efficiency, security, and interoperability.

Example Projection

A conservative projection helps illustrate how activity across different check types quickly translates into tangible revenue for the protocol. These numbers are purely for demonstration but highlight the efficiency of the model and how even modest adoption can sustain both operations and community rewards.

• Yield Activity: If $10M is locked into Yield Checks at an average return of 5 percent, that generates $500k in annual interest. With a performance fee of 10 percent, the protocol captures $50k, while $450k remains with users. If adoption grows to $50M under the same conditions, revenues scale linearly to $250k, showing how Yield Checks alone can become a major driver of income.

• Vesting and Payment Checks: $50M allocated into vesting schedules or large-scale payment agreements at a 0.05 percent minting fee results in $25k collected upfront. While the percentage is small, it applies to every check minted, creating a consistent and reliable inflow. If vesting usage expands toward $200M, which is realistic for project treasuries and team allocations, fees grow to $100k annually.

• Secondary Market Trading: $5M traded on NFT Check marketplaces at a 1 percent royalty adds $50k in revenue. This figure compounds as liquidity and adoption grow. At $25M in trading volume, royalties would add $250k, turning secondary trading into a significant source of recurring revenue.

• Lending Activity: Peer-to-peer lending introduces another layer of income. If $20M in loans are facilitated with an average interest rate of 6 percent and the protocol captures 0.2 percent of repayments, that results in $24k annually. If lending scales to $100M, revenue grows to $120k, helping diversify streams beyond minting and yield.

• Compounding Effects: When these streams are combined, the impact grows significantly. For example, modest adoption across yield, vesting, trading, and lending could generate $300k to $500k annually. With stronger adoption and broader market growth, the same structure could push annual protocol revenues into the multi-million-dollar range.

This layered approach ensures that no single product or use case is solely responsible for sustainability. Each check type contributes its share, and as adoption increases across multiple fronts, the revenue base strengthens in parallel. Even under conservative assumptions, the model demonstrates resilience, scalability, and the ability to continually support staking rewards, token burns, and long-term development.