Tokens of Better Bank

BetterBank’s ecosystem operates through two core tokens: Esteem ($ESTEEM) and various forms of Favor ($USDTF and $ETHF upon launch).

Esteem ($ESTEEM) – Governance & Ownership

Esteem is the primary governance and ownership token of BetterBank. Holding Esteem represents partial ownership of the protocol, allowing users to participate in its growth while benefiting from its expansion.

• Seigniorage Rights – Staking Esteem in one of the Wildlands Groves rewards its corresponding type of Favor continuously to the participant.

• Elastic Supply – Esteem may be minted and burned at any time by users of BetterBank, ensuring a stable correlation between supply and demand.

• Minting & Rewards – Users can mint Esteem at a gradually increasing price. It is also rewarded over time based on Stronghold deposits and rewarded immediately when buying Favor.

• Burn Mechanism – Esteem can be burned to mint Favor, providing an opt-out that doesn’t hurt the remaining holders.

• Governance Utility – BetterBank is meant to eventually decentralize, and if it successfully does so, Esteem is intended to function as the governance token, granting its owners voting rights.

Favor (Starting with $USDTF and $ETHF) – Synthetic Credit & Liquidity Engine

Favor tokens are BetterBank’s synthetic credit asset, designed to power the lending and borrowing ecosystem. Unlike traditional algorithmic stablecoins, Favor is backed by a seigniorage model that integrates directly with lending pools, ensuring deep liquidity and stability.

• Bought or Rewarded - Favor tokens are freely minted over time to stakers of Esteem in the Groves, but can also be bought to instantly increase borrowing capacity, with free Esteem added in the deal.

• Capital Efficient Credit System – Favor replaces traditional fractional reserve banking models by acting as on-chain collateral with actual reserve value and liquidation thresholds.

• Market-Driven Stability – Favor’s supply expands based on real-time demand, accepting volatility in the Wildlands to stabilize yields in the Stronghold.

• Utility in Borrowing & Staking – Favor can be used as collateral for borrowing when LP'd and deposited in lending markets.

Both tokens work in tandem to create a self-reinforcing economic loop, where Favor fuels borrowing and liquidity, while Esteem governs the system’s expansion and economic balance.