The RAIFI Economic Flywheel

RAIFI employs an advanced economic model based on Internal Coordination Theory, inspired by Olympus DAO principles but enhanced through AI integration and real revenue generation. This creates self-reinforcing economic dynamics that reward cooperation over speculation.

Core Economic Mechanisms

The system operates through three fundamental pillars regulated by sophisticated policy levers:

Staking (Internal Coordination): Users lock RAI tokens to receive rewards, demonstrating long-term commitment while reducing circulating supply. This creates positive price pressure and ecosystem stability. Stakers receive sRAI tokens that automatically compound every 8-hour epoch, with APYs ranging from 136% to 2,293% based on AI-optimized parameters.

Bonding (Price Coordination): Users contribute external assets (stablecoins, RWA tokens, LP tokens) to the Treasury in exchange for discounted RAI with vesting schedules. This directly grows reserve backing and Protocol-Owned Liquidity while providing favorable entry opportunities.

Treasury Management (Reserve Support): Stores diversified assets backing RAI value including stablecoins, RWAs, and LP tokens. The Risk-Free Value (RFV) serves as transparent baseline backing.

Policy Lever Optimization

AI systems continuously adjust critical parameters to maintain economic balance:

• Staking Reward Rate & APY: Determines RAI token minting for stakers, with APY inversely correlated to system stability (lower APY indicates higher system health)

• Bond Control Variable (BCV): Adjusts bond discount rates to manage Treasury composition and maintain optimal asset balance

• Premium Over RFV: Reflects market confidence in RAIFI's coordination mechanisms, signaling ecosystem health