# Ecosystem Mechanics

The agent treasury is vital to the Flywheel.  It's revenue generation is tightly linked to the size of the yields offered by the protocol.

<figure><img src="/files/j38BzYpZkpnpotwZqMOp" alt=""><figcaption></figcaption></figure>

### Why staking?

Staking removes supply from circulation. For doing this, we offer these users rewards from the treasury  investments and tax revenue.

### How does the treasury acquire $PPAI?

$PPAI tokens are accumulated by the treasury during sell offs, or as the treasury grows in value vs. the Market Cap of the token.  *Overperformance of the treasury means more $PPAI is accumulated and price is pushed higher by the Agent.*

### What drives yields?

Yields are driven by multiple factors:

* Amount of $PPAI in Reward Pool\
  \&#xNAN;*This means the more $PPAI the treasury accumulates, the higher the yields that can be offered.*&#x20;
* Price of $PPAI\
  \&#xNAN;*This means the higher the price of $PPAI, the higher the yields become.*

*This means if price grows quickly, it will incentivize users to stake more tokens to receive the yield, which removes them from circulating supply. These users must purchase $PPAI to stake and receive the yields which pushes price further. This creates a flywheel of incentives which continuously pushes yields and price higher as more tokens are staked, eventually creating supply shock. If a sell-off occurs, the treasury buys back $PPAI to protect floor price and create reversals.*&#x20;


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