> ## Documentation Index
> Fetch the complete documentation index at: https://docs.areal.finance/llms.txt
> Use this file to discover all available pages before exploring further.
# Overview
> From minting RWT to acquiring real-world assets and distributing their yield
export const DistributionLive = () => ;
**Every unit of capital paid to mint RWT goes straight into acquiring real-world assets for the
basket.** Those assets generate yield, and that yield is distributed according to a model the
community defines.
## How it works
Anyone can mint RWT by paying in **USDC** at RWT's current **Book NAV price** (the basket's
book value per token). The payment enters the protocol as new capital for the basket.
Which real-world asset to acquire is decided through a **decision market (futarchy)**: the
community proposes candidate assets, and the market selects the ones expected to create the
most value for the basket.
The capital is used to buy the chosen income-generating real-world asset (RWA) and add it to
the basket.
The RWA produce real, off-chain income, net of the costs of servicing them.
Net income is split according to the community-defined model (currently **40 / 30 / 20 / 10**):
| Share | Direction | Effect |
| ----- | --------------------- | ------------------------------------------------------------------------ |
| 40% | Compounding | Buys new RWA, raising the basket's value per token (Book NAV). |
| 30% | stRWT staking rewards | Flows to stakers as a rising stRWT to RWT exchange rate. |
| 20% | Liquidity | Deepens the on-chain market for stable entry and exit. |
| 10% | ARL buyback & burn | Buys [ARL](/governance/arl) on the market and burns it, reducing supply. |
These shares are parameters: the community can change them through governance voting to keep
the protocol at maximum efficiency.
## RWA Basket
The RWA Basket is the productive core of the protocol: a community-owned portfolio of tokenized,
income-generating real-world assets. It is what the minted capital buys and what produces the
yield that flows through the model above. The community decides which assets to acquire, and each
one adds its income to the protocol.
In essence, the basket is the source of all yield in the protocol and the real backing behind the
returns participants earn.
See the assets currently in the basket and the total RWA capitalization.
## Two tokens
Areal's goal is a maximally liquid, RWA-backed token. To keep RWT freely tradable while still
rewarding the people who back the protocol for the long run, the model is split into two tokens:
**RWT** stays liquid for anyone who wants exposure, and **stRWT** supports liquidity and rewards
long-term holders who stake.
| Token | What it is |
| -------------------------- | --------------------------------------------------------------------------- |
| **Real World Token** `RWT` | A share in the RWA basket. Its fundamental price is **Book NAV per token**. |
| **Staked RWT** `stRWT` | A share in the staking pool. Earns the 30% reward share via a rising rate. |
