ZEN

Essence is a community-driven protocol with ZEN holders being the collective stewards of the PCV and the Essence ecosystem. ZEN holders have skin in the game as the direct beneficiaries and risk bearers of PCV performance, aligning ZEN holders and CHI holders to ensure a productive ecosystem.

Value Accrual

If the protocol is Overcollateralized, CHI is minted and used to buy back ZEN, accruing value to the price of ZEN.

Protocol Revenue

The protocol can become overcollateralized through the PCV appreciating in value or earning yield, both of which increase the total value of the PCV and put the protocol in an overcollateralized state. In this case, the ZEN brought back would be passed on to xZEN stakers.