4.5 SOURCE Token Dynamics

SOURCE is the governance token of the ReSource Protocol and will, as elaborated above, be used to underwrite debt accounts, and pay network fees. For an overview of the SOURCE token supply and distribution, please refer to the chapter titled “SOURCE Governance Token” below.

The ReSource Network consumes SOURCE through 1) the payment of fees by members, 2) staking requirements imposed on Underwriters.

The ReSource Network emits SOURCE to the market via 1) staking rewards paid to Underwriters, Delegating stakers and 2) SOURCE rewards paid to RSD savers. Excess SOURCE that is not currently required to monetarily stabilize RSD is sequestered within the network’s Reserve.