Avareum Fundamentals

This section will outline a framework for understanding how we can value AVAR in an efficient market.

When finding resemblance for tokens in the traditional financial world, stocks are a commonly referenced asset class. This is especially true for tokens with a supply reduction model. There is always a direct relationship between cash flow generated in the service and the value of tokens burned—comparable to a direct relationship between net profits generated and buybacks in the equity markets.

The resulting impact for token holders and shareholders is comparable when a corresponding token burn or equity buyback is incurred. A stock buyback increases each outstanding share's proportional ownership of the total company value, while a token burn increases each token's proportionate ownership of the entire protocol value.

At a high level, AVAR will serve in the following capacities:

• As votes that can be cast in the governance poll system

• As a utility token needed by Avareum investors to be granted to invest in advanced fund strategies.