The Picasso treasury’s different revenue streams
The Picasso treasury functions as a broad representative of the Picasso ecosystem, actively generating revenue through network fees, staking, and liquidity provision. The xPICA fNFT therefore gives holders incentives to be held long term, and also provides them a means to earn revenue through the active yield the xPICA fNFT returns.
The Picasso protocol earns yield on its own protocol owned assets, network fees and revenue from its incubated protocols. This model ensures that Picasso retains, manages, and distributes back to token holders through xPICA fNFTs. Whilst Picasso generates revenue from the onset of its launch, bonds will be used to grow the treasury, specifically focusing on KSM liquidity, while focusing on creating a sustainable xPICA inflation schedule from launch. Users will be able to stake xPICA for significant yield opportunities that are currently not available in Kusama.
The impact of xPICA on the Picasso treasury will have multiple second and third order effects which will filter back into improved returns for xPICA holders. Trading fees that the Picasso treasury earns will be provided as an additional stream of yield returns to xPICA holders. The deepened liquidity in the ecosystem will mean higher network activity, which will further increase return on network fees.