Asset Management & Value Transfer

When payments are made in currencies other than SNR, the Sonr system initiates a buyback process. This approach involves using the received non-SNR currency to purchase SNR tokens from the open market. This mechanism supports the demand and market value of SNR tokens and ensures a consistent influx of SNR into the system, reinforcing its utility and circulation within the ecosystem.

The SNR tokens acquired through the buyback process are contributed to the SNR fee pool. This pool plays a pivotal role in the ecosystem, as it is utilized for various operational purposes, including network transaction fees, rewards for validators, and other ecosystem incentives. This continuous replenishment of the fee pool ensures the smooth operation and sustainability of the network's economic activities.

Half of the unvested tokens, representing 50% of the total, are allocated to the Sonr treasury. This treasury acts as a strategic reserve, supporting the long-term objectives of the Sonr ecosystem. Funds from the treasury can be utilized for various purposes, including development initiatives, marketing efforts, community growth, and other activities that align with Sonr’s strategic goals and contribute to the overall growth and success of the platform.

To ensure the equitable distribution of incentives and maintain a balanced economic model, Sonr has implemented a system where inflation rewards scale relative to the authentic growth of its user base. This approach means that as the number of genuine users on the platform increases, so do the inflation rewards. This scaling mechanism aligns the incentives with actual platform usage, fostering an environment where growth in the user base directly contributes to the overall health and stability of the token economy.