# Overview

### Token

AVA is an ERC-20 token with extended abstract contract integrational features to support protocol features such as [rewards ](https://addi.gitbook.io/advias/advias-token/rewards)and [dividends](https://addi.gitbook.io/advias/advias-token/dividends).

### Utility

The AVA token perpetuates income and appreciation through our take on the PRD (Perpetual Reward Design).  Each AVA token automatically begins its inclusion in a pool of funds.  This pool is full of the protocols avasToken's and grows in amount through the protocols avasToken appreciation.

**PRD** is the concept of tokenomics where rewards generate and where the last reward gives rewards in one of the previous rewards.

### Value

The token is a true representation of ownership in a protocol, similar to a dividend stock, but with a trustless and decentralized control over dividends.

An accounts exact ownership of supply will directly correlate to the percentage of dividends the account receives.  It is important to note that we are able to blacklist accounts for receiving dividends, such as DEX's and CEX's.

Fair value is something rarely used as a measurement in crypto, but that changes with us.

The following formula assumes the rewards are only claimed once a year on average, at the end of the year.  In a real world scenario, the yield value will likely be high in a compounded effect of the average savings rate.

#### **Price**

$$
TVL*averageDepositInterestRate*dividendFactor/supply\*multiplier
$$

#### **Dividends**

$$
TVL*averageDepositInterestRate*dividendFactor\*supplyOwned
$$

As an example, owning 1% of the supply of AVA will annually net a holder 500,000 USD in value of a 10% compound yielding assets if the average TVL is 1 billion dollars.

* Owning 0.1% of total supply: 50,000 USD in dividends at an average 1 billion dollar TVL
* Owning 0.01% of total supply: 5,000 USD in dividends at an average 1 billion dollar TVL

### How It Works

Each AVA holder will create fibonacci sequence like growth resulting in a asset value compounding situation.

Each AVA reward asset is the [avaToken ](https://addi.gitbook.io/advias/advias-token/broken-reference)of the protocol, these tokens on their own grow in appreciation.  These dividends can be claimed to store or redeem underlying asset.

![](https://1200670665-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVxjtb83gawld9ZjCWNmj%2Fuploads%2Fe2Wg1D6xAsSWC8xvi76Y%2Fpath847-token.jpg?alt=media\&token=234c7120-5170-477b-99fd-63e35c541213)

#### **How it looks:**

![](https://1200670665-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVxjtb83gawld9ZjCWNmj%2Fuploads%2FabmJKWdkmIQkcFIPXYv1%2Fo.jpg?alt=media\&token=5175b808-25c9-4a17-86d7-c3006db00805)
