# Economic Mechanisms

### The Virtuous Cycle

The core tenets of the Idols NFT ecosystem are cooperation, giving and receiving. When Idol NFT holders and $VIRTUE stakers cooperate and give to each other, they both receive back something that is greater than what they've given. We call this The Virtuous Cycle. The Virtuous Cycle can be described below:

1. Idol NFTs give a 7.5% commission to all $VIRTUE token stakers. This commission is based off of the sales price, so the higher the sales price the more that is given.
2. As more royalties are given to $VIRTUE stakers, the staking yield for $VIRTUE increases. Increased yields for $VIRTUE staking will increase demand for the $VIRTUE token itself.
3. $VIRTUE stakers take $VIRTUE tokens off the open market. When $VIRTUE tokens are taken off the open market, additional $VIRTUE must be acquired from the [Bonding Curve](/usdvirtue-token.md#bonding-curve)&#x20;
4. When new $VIRTUE token is emitted from the Bonding Curve, more stETH is deposited into the [Idol Treasury](/idol-nfts.md#idol-treasury).
5. When more stETH is deposited into the Idol Treasury, Idol NFTs receive more stETH rewards in perpetuity. This should lead to a higher price for Idol NFTs. (Leading us back to #1)

![](/files/VCpN2fdjYsg6MqroDJ9b)

At launch, Idol NFT holders and $VIRTUE token stakers will be the only participants in The Virtuous Cycle. However as the Idolverse develops, more projects will be added into the Cycle increasing value for everyone.


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