Why This Deserves Your Attention

Here's the catch with reward-only-when-spending models: they essentially function as a tax on holders.

Consider holding $5,000 in stablecoins as your on-chain checking account. Under current implementations, exchanges might theoretically share a portion of their yield with you.

But flip the scenario—under alternative economic designs, this arrangement shifts the burden entirely to those simply maintaining balances. You're penalized for not spending, not rewarded for holding. That's the hidden cost nobody talks about: staying liquid costs you.

The mechanics are simple but the implications are profound. It changes everything about how you should think about on-chain treasury management.