> For the complete documentation index, see [llms.txt](https://blueprint.builtbydao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blueprint.builtbydao.com/how-it-works/eqtblt-economy.md).

# The EQTBLT Economy

{% hint style="info" %}
EQTBLT is a **closed-loop network currency, not a payout.** Earned through contribution, spent in-network, and redeemed in-kind against the DAO — never designed to be cashed out. This is the spine of the model.
{% endhint %}

## The loop

```mermaid
flowchart TD
    A[Contribute<br/>work · training · rent] --> B[Earn EQTBLT<br/>~$1, soul-bound]
    B --> C{Redeem}
    C -->|~90% in-kind| D[Goods · services<br/>home purchase · short-stay]
    C -->|~10% cash-out<br/>gated + penalized| E[USDC]
    D --> F[Burned against the DAO<br/>fulfilled in-kind, below cost]
    F --> G[The spread funds the system<br/>~25% backing covers cash-out 1.6–3.2x]
```

Because EQTBLT is soul-bound, "spending" = redeeming/burning a claim back to the DAO; the DAO satisfies it **in-kind** with housing/goods/services it produces near cost — not with cash.

## Redemption scope (locked)

* Foundry goods (reclaimed materials, products)
* Member services (trades, childcare, etc.)
* Home purchase / down payment
* Short-stay / temp lodging

**Not monthly rent** — rent flows *in* as cash (USDC) and *mints* EQTBLT. The cash rail and the equity rail stay separate.

## Why \~25% fractional backing is sustainable

Cash-out is the **exception (\~10%)** — penalized (93% on a 24-month vest) and gated. The system steers value into ownership and in-network spend.

1. Most EQTBLT is never cashed out — it's redeemed in-kind for housing/services the DAO makes at marginal cost **below $1**.
2. The DAO extinguishes a \~$1 liability it reserves only \~$0.25 against, by delivering a real good/service. **The spread funds the system.**
3. Vesting + liquidity gating smooth redemption timing; a Uniswap v3 $1-floor LP (with USDC harvesting) backstops the market edge.

{% hint style="success" %}
**The cost-reduction linchpin appears twice** — once on the build side (cheap to build), and once on the redemption side (cheap to fulfill the claims). Same engine, both directions. The \~25% backing is the timing buffer; the spread is the real backstop.
{% endhint %}

## Compensation rule (locked)

Cash pays **only for advanced / licensed skills the network can't supply internally** (licensed architect, specialized legal, certain licensed trades). Everything trainable/networked is paid in EQTBLT — which *is* the ownership-accrual mechanism. This keeps real cash burn narrow.

## The key levers & sensitivities

The model stress-tests the dials that matter most:

* **Contributor-labor coverage** — the master lever; drives the whole cash requirement (capped at \~65% at maturity).
* **EQTBLT cash-out rate** (\~10% base) — the dial between ownership engine and treasury drain; stress-tested to 15–20% (coverage holds).
* **In-kind fulfillment spread** — the margin that makes 25% backing hold.
* **Salvage rate** — drives material cost-avoidance.

## The dual token

EQTBLT is one half of a dual-token system. **EQTBLT** = earned equity (soul-bound, non-transferable). **BLTBY** = the transferable, market-priced utility/investment token (capped at 7B), the securities-sensitive instrument structured with counsel. EQTBLT builds ownership; BLTBY is the investable instrument — distinct by design.

{% content-ref url="/pages/CbsFE9ISu6UMt8Lguehy" %}
[The Honest Case](/invest/the-honest-case.md)
{% endcontent-ref %}


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