Today, teams and investors face a harsh reality - to realize gains, they must sell their tokens on the market, directly competing with and often hurting their own holders. This creates misaligned incentives where success leads to selling pressure. Glue introduces a revolutionary alternative where value can be captured through redemption rather than selling.
When a project succeeds and generates revenue through Glue, this revenue becomes locked backing. Instead of teams and investors needing to sell tokens to capture value, they can burn their tokens to claim their share of this backing. This creates sustainable value capture that grows with project success rather than harming the token price.
Let's see how this works in practice.
In the traditional model, teams and investors face a painful dilemma. To capture value, they must sell their tokens on the market, creating selling pressure that harms the very asset they're trying to profit from. A team holding 10% of supply who needs to realize $1M in value has no choice but to sell into the market, damaging token price and holder confidence in the process.
The Glue model transforms this dynamic entirely. As projects generate revenue and send it to their Glue address, teams and investors gain a new way to capture value. After just 30 days of $100,000 daily fees, $3M in backing accumulates. The team can now burn a small portion of their holdings to claim their share of this backing. When they burn 1% of their tokens, they receive $300,000 in backing without affecting market price. In fact, the supply reduction from burning actually benefits all remaining holders.
Large investors gain perhaps the most powerful advantage from this model. In traditional markets, exiting a large position means carefully selling over months or years to avoid crashing the price. An investor trying to exit a $5M position must constantly create selling pressure, damaging both the token price and project reputation.
Through Glue, this same investor gains a completely different path. As the project earns revenue and locks it as backing, the investor can strategically burn portions of their position to claim backing. After 90 days of $100K daily fees, $9M in backing has accumulated. The investor can burn just over half their position to claim $5M in backing through a single transaction. Not only does this avoid market impact, but the supply reduction benefits their remaining tokens.
The true power of this model emerges in how it aligns long-term incentives. Teams can earn continuously from project success without ever needing to sell tokens. As monthly revenue grows from $3M to $3.5M to $4M, teams can burn small portions of their holdings each month to capture value. Each burn reduces supply while maintaining backing, strengthening the token's fundamentals month after month.
Glue unlocks another powerful opportunity - the ability to borrow against backed value instead of selling. Because sticky tokens have real, locked backing, they become ideal lending collateral. A team holding tokens backed by $10M in revenue can borrow against this position instead of selling it. This lets them access liquidity while maintaining their full upside exposure to the token's growth.
This transforms sticky tokens into true strategic holdings. Teams and investors can make decade-long commitments knowing they have multiple paths to access value: burning portions for backing, borrowing against their position, or simply waiting as backing grows naturally through project success. The days of being forced to sell tokens for operational needs are over.