Stablecoin Yield Guide: RWA Mining Pool

1. Introduction

On-chain mining has long been a popular way to earn passive income in the crypto world. Whether through PoW mining relying on computational power or PoS staking and liquidity mining, participants can achieve excess returns. The enthusiasm for on-chain mining fundamentally stems from three characteristics: ① permissionless participation threshold, ② on-chain traceable income distribution mechanism, ③ the "financial Lego" nature of composable and liquid assets. These elements have made on-chain mining a core narrative of DeFi and have made APR one of the most sensitive numbers for crypto users.

However, over time, the sustainability issues of traditional DeFi mining have gradually emerged. Many projects rely on inflationary token incentives and continuous capital inflows to maintain pool yields. After liquidity declines and market enthusiasm wanes, the once impressive mining returns often drop to zero, turning into a "pump and dump" Ponzi scheme. In light of this reality, consider: is there a more stable on-chain mining model, perhaps even one supported by real-world assets? This is precisely what today's article will introduce: RWA mining—by bringing real-world assets onto the blockchain and constructing a reward mechanism based on real cash flows, RWA pools are providing a new on-chain income solution for stablecoin holders and long-termists.

2. What is Different About RWA Mining?

It is clear that RWA mining is an on-chain income system with a stronger real-world foundation and higher sustainability. But how does it differ from previous mining models?

To better understand the uniqueness of RWA mining, we can start with the basic types of mining, dividing them into two main categories:

1. Consensus Participation Type: Essentially, users contribute resources to participate in chain consensus or build protocol foundations in exchange for rewards.

|-----|-----------|--------|-----------| | Type | Function Path | On-chain Consensus | Example | | PoW | Provide computational power to solve problems | ✔️ | BTC, Kaspa | | PoS | Lock tokens to participate in validation | ✔️ | ETH, SOL | | LP | Provide liquidity to support trading | ✔️ (indirect) | Uniswap | | Storage | Provide storage resources like hard drives | ✔️ | Filecoin |

2. Incentive-Oriented Type: This type is more akin to a "behavioral incentive" mechanism, where rewards can be obtained by staking/holding assets or participating in interactions.

|------------|---------------|--------|--------------------------------------------| | Type | Function Path | On-chain Consensus | Example | | RWA Mining | Stake or hold to directly participate in profit sharing | ❌ | RealtyX (RST head mine) | | Token X NFT Mining | Stake or hold to receive incentives | ❌ | MOCA | | Social/Task Mining | Social interaction or task platform | ❌ | Lens, TaskOn | | Ponzi Incentives | Token issuance games under the guise of mining | ❌ | Projects without real business support, tokens with no intrinsic value, relying solely on new capital inflows and token inflation to maintain returns for old users |

 The uniqueness of RWA is evident:

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   It does not create returns out of thin air, but relies on cash flows generated by real assets;

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   The staked/held tokens are not native governance tokens, but RWA tokens that map to real-world assets;

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   Compared to DeFi pools relying on inflationary subsidies, RWA pool returns are more predictable and robust, suitable for users with lower risk tolerance.

Taking RealtyX's RST head mining activity as an example, users who purchase and hold RST enjoy property rights and rental income rights, and by staking RST tokens backed by physical real estate, they can receive a proportional share of the rental income from unsold RST on a daily basis.

This makes RWA mining not a game of passing the parcel, but a mechanism for sharing profits from real-world value on-chain.

3. From Real Assets: The Source of RWA Mining's Returns

(1) What Exactly is Tokenized in RWA?

In the process of RWA tokenization, the types of rights represented by the tokens may include rental returns, debt cash flows, and other income rights, or even some form of asset ownership. However, due to the legal frameworks in various countries, most projects currently adopt a path of income rights tokenization, meaning that the tokens represent cash flow rights linked to the assets rather than legal ownership or property rights.

Taking RealtyX as an example, RealtyX manages high-quality real estate through SPVs and maps it to users in the form of tokens, allowing holders to receive continuous rental income and further participate in the platform's incentive mechanisms. RealtyX has completed "income rights tokenization" within the existing legal framework, but from the user experience perspective, RealtyX's tokens are highly close to the concept of "ownership"—users have clear, long-term returns linked to property performance and can transfer, stake, and participate in governance voting of the corresponding SubDAO (including decisions on whether to sell or change brokers).

(2) How is RWA Tokenized?

For the sake of this article, we will categorize the assets being tokenized in RWA into financial and physical types:

|-----|------|------|-----------|----------| | Type | On-chain Difficulty | Compliance Structure | Source of Returns | Represented Rights (Common) | | Financial | Relatively Low | Relatively Clear | Interest, Asset Appreciation | Income Rights | | Physical | High | Complex | Operational Income, Asset Appreciation | Ownership + Income Rights |

Financial assets (such as bonds, treasury bills, notes, fund shares, etc.) already have standardized contract structures and income flows. The most common practice is to tokenize their "income rights":

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  Typically held by a fund, trust, or structured product vehicle that holds the underlying bonds and other assets;

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  The protocol obtains daily net values/interest rates through off-chain API interfaces;

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  Smart contracts map this to tokens and automatically distribute income or reinvest compound interest;

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  KYC, custody, valuation, income calculation, and contract execution processes are relatively clear and compliance-friendly.

Physical assets (such as real estate, warehouse receipts, cars, machinery, etc.) cannot be directly "on-chained" and need to be tokenized through legal entities such as SPVs and custodians. Taking RealtyX as an example, the key steps in its real estate tokenization include:

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  Asset Identification and Valuation
   RealtyX first selects high-quality properties in real estate markets like Dubai, entrusting professional agencies for evaluation and due diligence to clarify property value and investment potential.

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  Establishing a Compliance Structure (SPV)
   After evaluation, the platform establishes a special purpose vehicle (SPV) to hold the target property in trust form, ensuring legal separation of assets and projects. The SPV is the holder of off-chain assets, providing the legal and operational basis for token issuance and subsequent income distribution. After taking over the property, the SPV entrusts it to local professional real estate agencies for management and rental. The agency estimates annual rental returns and reports actual operational data to the SPV. The SPV then sets the on-chain income distribution model based on this data, providing a real cash flow source for subsequent "mining."

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  On-chain Issuance and Income Mapping
   The SPV issues RST (RealtyX Standard Token) through smart contracts based on property value and estimated cash flows, representing the RWA Token of that property. Each RST corresponds to a certain proportion of property shares and receives rental income from unsold portions according to the rules.

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  User Verification and Receipt
   Users must complete KYC before holding RST and become members of RealtyX SubDAO (property, RST, SubDAO correspond one-to-one), enjoying income rights and governance rights. Daily rental income is airdropped proportionally to holders' wallets, constituting the actual source of income for on-chain "mining."

Through this mechanism, a reliable tokenization path of "real assets → compliance structure → on-chain token → income distribution" is achieved, ensuring that RWA mining's returns come from real cash flows off-chain, rather than inflated incentives. This is also the key reason why RWA mining is more sustainable and secure.

4. To On-chain Returns: The Incentive Design of RWA Mining

Compared to traditional mining that relies on computational power, inflationary subsidies, and liquidity TVL, the incentive design of RWA mining is more straightforward and reliable: what it distributes is not governance tokens printed out of thin air, but stable cash flows generated by real assets. This part has been mentioned in the second section; below, we briefly describe it using RealtyX as an example:

In addition to the rental income rights brought by the tokens themselves, a head mining incentive mechanism is also designed, mainly consisting of three parts:

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  Rental Income Pool: Composed of rental income from unsold shares of each property, allocated daily;

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  Node Level System: Differentiated income weighting based on the amount of platform tokens staked by users;

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  USDC Airdrop Distribution: The system distributes income to users' wallets in stablecoin form according to the staking ratio, without the need for manual collection.

This is a fair and transparent on-chain profit-sharing model that encourages long-term participation. This design not only provides early participants with the opportunity of "the earlier you come, the more you earn," but also makes "those who are willing to accompany the assets to grow over time can continuously earn returns" a reality.

5. Participation Suggestions and Risk Warnings

1. Understand the underlying assets and clarify "where the returns come from"
   Different RWA projects correspond to significantly different underlying asset structures, and the sources of returns also vary. Before participating, be sure to review the project white paper, asset custody arrangements, income calculation logic, etc., to confirm their authenticity and compliance.

2. Start with a small amount, observe the income rhythm and on-chain behavior
   Prioritize platforms that have completed audits, launched multiple assets, and support on-chain data queries. Using stablecoins for participation is a relatively safe approach. Some platforms also have "income simulators" or "daily income dashboards" that can be used to assess whether the mining pool is distributing stable dividends.

3. Pay attention to head mining phases and node incentive opportunities
   Many platforms offer higher APRs or Boost multiples to attract early users during the initial on-chain phase of new assets. For example, RealtyX has a head mining phase after each property goes live. Seizing early opportunities is key to obtaining excess returns from RWA.

4. Reasonably assess liquidity and exit mechanisms
   Due to the strong off-chain nature of the underlying assets, most RWA tokens do not have the same liquidity as ordinary governance tokens, which may lead to exit delays or price discrepancies in secondary markets. Before participating, clarify whether the platform supports redemption at any time, whether it supports circulation, and whether it has liquidity incentive mechanisms, deciding whether to participate based on personal risk preferences and financial arrangements.

5. Risks to be aware of when participating in RWA pools

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  Off-chain asset volatility: Property vacancy rates, bond defaults, fluctuations in storage prices, etc., can all affect actual returns.

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  Compliance and KYC restrictions: Most platforms require KYC completion, and some RWA tokens have thresholds of "only for qualified investors."

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  Contract and custody risks: If the platform's contracts are unaudited or the asset custodian is unregulated, it may lead to financial or legal risks.

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  Exit and liquidity risks: Non-circulating assets on-chain often face issues of inactive secondary markets and token discounts.

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  Transparency differences: Different projects vary in their disclosure of asset valuations, operational data, and dividend logic, affecting investment judgments.

6. Conclusion

As the DeFi narrative gradually recedes, the market is re-examining the sources and structures of "returns." It reminds us that on-chain returns do not always have to rely on minting and gaming; when real rental income, interest, or other revenues support the assets, so-called "mining" is actually a lower-noise value-sharing mechanism. This logic may not bring astonishing APRs in the short term, but it is expected to become a new haven for stablecoin funds, providing certainty for long-termists.

Of course, RWA mining is still in its early stages. Both the standardization of the asset side and the unified norms of on-chain mechanisms need improvement. But it at least opens up a realistic possibility for us: Web3 is beginning to truly participate in the real economic system. For example, after purchasing RST (RealtyX real estate RWA token), what you receive is not inflationary tokens and superficial yield rates, but the real, stable rental income from that property every two weeks.

Perhaps this is the next stop for on-chain finance: moving from the era of structural design frenzy to a construction cycle supported by cash flows.