Because LER requires no lock-up of the underlying equity or token, it increases liquidity and reduces sell pressure on the underlying asset, unlike conventional staking-style loyalty schemes.
Source quote, verbatim
But, LER does not require lock-ups for the underlying equity or token assets, thus increasing liquidity and reducing sell pressure on the underlying equity or token assets.
Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054
Holds when
rewards accrue on the basis of verified holding duration rather than escrowed assets
Classification
mechanismsupport: argueddefi
Verify
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