$REP Token

$REP serves as the accounting token for representing real-world asset productivity on Treasurenet. $REP serves as a representation of the credibility of each Producer, with its utility derived from the underlying asset(s) it records. The purpose of the $REP is to document and verify the legitimacy of the Treasurenet economy.

On-chain proof of creditworthiness: $REP tokens serve as an on-chain proof of creditworthiness for Producers in a decentralized and anonymous manner. $REP can be used to transparently price asset financing. This is because $REP tokens track the production of assets by the Producer, which shows that the Producer has an underlying asset and whether this asset is economical.

Collateralization: $REP tokens can be used as collateral for financing activities on the Treasurenet platform. This means that users can use their $REP tokens for financing, without having to sell their real-world assets. On their own, $REP tokens signal a commitment to a financing pool, and the same asset (or portion of the asset) cannot be double-committed elsewhere.

The Treasurenet DAO is also looking to set up real-world legal structures to claim real-world collateral. This means that if a user defaults on a loan, the Treasurenet DAO will be able to seize their real-world assets. This makes the $REP collateralization system more secure, as it provides lenders with a way to recover their money if a borrower defaults.

Although this type of legal structuring is common practice in legacy markets, combining real-world recourse with on-chain creditworthiness allows for radically transparent financing that is not possible without $REP and Treasurenet’s decentralized audit framework.

Asset-specific indexing: Producers who are connected to the TN Gateway can mint $REP tokens on a regular basis. The rate at which $REP tokens are minted depends on the type of asset that is being produced. This means that the cumulative representative value of an asset class can be tracked by looking at the number of $REP tokens that have been minted for that asset class. This information can be used to make financial decisions, such as deciding which asset classes to invest in. It is worth noting that the option to make this asset information public is in the hands of the Producers.