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Core Principle

One of the key architectural elements of the AREAL protocol is the yield and reward distribution mechanism for Ownership Token holders. The core feature: you don’t need to stake your tokens. Simply holding Ownership Tokens in your wallet is enough to earn rewards. AREAL tracks token balances, evaluates the duration and proportion of each holder’s position, and accrues rewards every second.
No staking, no locking, no special contracts. Hold OTs in your wallet → rewards accumulate automatically → claim them at any time in the Portfolio section on areal.finance.

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How It Works

The distribution process flows through several stages — from the project DAO’s decision to the holder’s wallet:
1

DAO decides to distribute

The DAO Ownership Company of a specific project decides — through futarchy governance — to direct a portion of earned revenue to token holders as rewards for holding.
2

Funds are sent to the distribution contract

The approved funds are transferred to the AREAL distribution contract on behalf of the specific project DAO. AREAL DAO charges a 0.25% fee on the distribution amount, directed to the Treasury.
3

Funds are split and deployed into the master pool

The distribution amount is split 50/50:
  • Half is used to mint/purchase RWT
  • Half is used to purchase USDY
Both sides are deposited into the RWT / USDY master liquidity pool for a defined distribution period. The default period is 12 months.
4

Position generates additional yield

While in the liquidity pool, the position earns additional yield from two sources:
  • Swap fee commissions from trades in the pool
  • Value appreciation of USDY and RWT tokens
5

Daily withdrawal in RWT

Each day, a proportional share is withdrawn from the liquidity pool. On withdrawal, the USDY side is converted to RWT at the current market price. The full reward is credited to holders in RWT — based on their OT balance and holding duration.
All rewards are paid out in RWT. This unifies the distribution process across all projects, strengthens the RWT economy, and incentivizes Ownership Token projects to participate in the broader AREAL ecosystem.

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No-Staking Architecture

Traditional DeFi protocols require users to stake tokens in a contract to earn yield. This creates friction:
  • Tokens are locked and illiquid
  • Users must interact with staking contracts (gas, complexity)
  • Composability is reduced — staked tokens can’t be used elsewhere
AREAL takes a fundamentally different approach:

Hold to earn

Simply keeping Ownership Tokens in your wallet qualifies you for rewards. No staking transactions, no lock-ups.

Real-time tracking

The protocol tracks every wallet’s OT balance continuously, evaluating both the amount held and the duration of holding.

Per-second accrual

Rewards are calculated and accrued every second — not daily, not weekly. Your rewards grow in real time.

Claim anytime

Accumulated rewards from all your Ownership Tokens are aggregated in the Portfolio section on areal.finance, ready to claim at any time.

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Yield Amplification Through Liquidity

A unique feature of the AREAL distribution model is that rewards grow while being distributed. By deploying funds into the RWT / USDY master pool during the distribution period:
  • Swap fees from every trade in the pool add to the total reward pool
  • USDY yield — as a yield-bearing stablecoin, USDY continues to appreciate
  • RWT appreciation — as NAV Book Value grows, the RWT side of the position increases in value
This means holders receive more than the original amount allocated by the DAO — the distribution mechanism itself amplifies the rewards.

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Aggregated Portfolio View

Holders who own multiple Ownership Tokens across different projects see all their rewards aggregated in one place — the Portfolio section on areal.finance:
  • Total accrued rewards across all OTs
  • Per-project breakdown of rewards
  • Real-time accrual counter
  • One-click claim for all accumulated rewards

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Summary

No staking required

Hold OTs in your wallet — rewards accrue automatically every second, no locking or contracts needed

DAO-governed distribution

Each project DAO decides how much revenue to distribute to holders through futarchy governance

12-month deployment

Funds are deployed into the master liquidity pool for 12 months, earning additional yield during distribution

Yield amplification

Rewards grow through swap fees and token appreciation while being distributed over the period

Daily distribution

A proportional share is withdrawn from the pool and credited to holders every day

Aggregated portfolio

All rewards from all OTs visible and claimable in one place on areal.finance