> ## Documentation Index
> Fetch the complete documentation index at: https://docs.artstarex.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Token Economy

> The token economic model relies on global participants to achieve sustainable value growth

The ArtStar RWA project’s community economic model relies on global participants to achieve sustainable value growth. The ART-RWA Token is the carrier of artwork RWA assets, operating with no fewer than ten economic models to ensure efficient, long-term operation through multiple sources such as financial returns, staking rewards, trading fee sharing, token appreciation, and ecosystem value creation.

<Info>
  ArtStar will build an innovative financial ecosystem integrated with DeFi,
  fostering a win–win structure for participants, supporting income generation,
  investment returns, and community rewards, and ensuring dynamic equilibrium of
  the ecosystem economy.
</Info>

## Core Economic Models

### ART-RWA Token Deflationary Pricing and Appreciation

As a token anchored to physical assets of cultural relics and artworks, the ART-RWA Token is an investment instrument pegged to physical art assets. It differs fundamentally from virtual token projects lacking real asset backing and offers real-world credibility and significant potential for value appreciation. (For details, see the [official website](https://www.artstarex.com))

ArtStar’s primary function is to tokenize physical art assets. Each token represents partial ownership of the asset. Physical assets are injected in a deflationary manner, creating potential appreciation space for token issuance.

<AccordionGroup>
  <Accordion title="RWA Token Model" icon="coin">
    * **Total supply**: 10,000,000
    * **Name/Symbol**: flexible at deployment (e.g., ART-RWA to satisfy artwork identification needs)
    * **Initial price**: set at deployment or sale launch, in USDT per token, with precise calibration to ensure smooth subsequent trading
    * **Reserved proportion**: 20% of total supply (2,000,000) reserved for the DEX liquidity pool (1,000,000) and marketing (1,000,000) to maintain pair operation and stability
  </Accordion>

  <Accordion title="Physical Asset Deflation Model" icon="chart-pie">
    Let $A$ be the total USD value of the asset (1:1 with digital dollars).
    Let $N$ be the total number of tokens issued for the asset.
    Let $T$ be the value of one token.
    Thus, the value of one token is given by:

    $$
    T = \frac{A}{N}
    $$

    This formula can be used to define the price of each token during the initial exchange issuance and subsequent market trading. For example, if the total value of the physical assets is USD 1.15 billion, with deflationary pricing set at USD 1.0 billion to maintain potential appreciation space, and 1 billion ArtStar tokens are issued:
    After deflation of the physical assets, pricing at `T = 1.00 USDT per token` leaves a 15% appreciation space per token at issuance.
  </Accordion>
</AccordionGroup>

### Physical Asset Privatization Operating Model

Physical asset privatization refers to investors acquiring all or most tokens and holding a sufficient amount to initiate the privatization process, helping buyers efficiently complete the consolidation, receipt, and subsequent operation of the physical asset.

<Steps>
  <Step title="Community Proposal">
    A privatization proposal must be submitted for public community discussion
    and can proceed only after receiving more than **67%** community support.
    Once a consensus is formed, the corresponding physical asset can be
    privatized and implemented.
  </Step>

  <Step title="Full Control of the Asset">
    After privatization is completed, the privatizer obtains full ownership and
    management authority over the physical asset and may legally hold, manage,
    operate, and dispose of the asset in compliance with applicable laws and
    regulations.
  </Step>

  <Step title="Rights and Revenue Distribution">
    After privatization is completed, related rights and revenues will be
    distributed precisely to all artwork token holders according to their token
    holdings, ensuring that participants share the value returns brought by
    privatization.
  </Step>
</Steps>

### Ecosystem Contribution Incentive Model

For activities undertaken by the ArtStar community—such as lending physical assets of cultural relics and artworks, creating physical and digital derivatives (including NFTs), metaverse exhibitions, GameFi, film/short series, and other innovative projects—the revenue generated is distributed according to principles that allocate a proportion to community contributors and a proportion to the ArtStar incentive fund.

<CardGroup cols={2}>
  <Card title="Project Proposal and Staking" icon="file-signature">
    Ecosystem project initiators submit feasibility proposals to the community.
    After preliminary approval by the management team, it goes to DAO voting.
    The initiator must stake funds for project risk management.
  </Card>

  <Card title="Review and Unlock Mechanism" icon="scale-balanced">
    If not approved, the initiator’s staked risk funds are unlocked. If
    approved, the assets remain locked; if the project fails to launch on
    schedule, the staked assets are donated to the incentive fund.
  </Card>

  <Card title="Revenue Distribution" icon="hand-holding-dollar">
    After an ecosystem project goes live, 10% of revenue goes to the ArtStar
    incentive fund and 90% to the project initiator.
  </Card>

  <Card title="Community Oversight" icon="eye">
    Project financials, progress, incentive schemes, fund flows, and donations
    are transparently disclosed according to DAO decisions.
  </Card>
</CardGroup>