# \[CORE\] Introduce CTR Value Accrual Through Fee-Based Buybacks and xCTR Rewards

**URL:** https://forum.citrea.xyz/t/core-introduce-ctr-value-accrual-through-fee-based-buybacks-and-xctr-rewards/33
**Category:** Proposals
**Tags:** core
**Created:** [July 1, 2026, 6:06am UTC](https://forum.citrea.xyz/t/core-introduce-ctr-value-accrual-through-fee-based-buybacks-and-xctr-rewards/33 "2026-07-01T06:06:23Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![0x22](https://avatars.discourse-cdn.com/v4/letter/0/e19b73/32.png) [@0x22](https://forum.citrea.xyz/u/0x22)
#### Post date: [July 1, 2026, 6:06am UTC](https://forum.citrea.xyz/t/core-introduce-ctr-value-accrual-through-fee-based-buybacks-and-xctr-rewards/33/1 "2026-07-01T06:06:23Z")

</div>

## Summary

This proposal suggests exploring a CTR value-accrual mechanism funded by a small additional component added on top of existing Citrea transaction fees.

The goal is not to replace cBTC as the gas token. cBTC can and should remain Citrea’s native gas token. The idea is instead to allow CTR to capture part of the value generated by real network activity.

## Proposal

Citrea could add a small additional component on top of existing transaction fees, for example between 10% and 20% of the current fee amount.

It is important to clarify that this means 10% to 20% of the fee amount, not 10% to 20% of the transaction size.

For example, if a transaction currently costs around $0.10 in fees, a 10% additional component would add around $0.01, and a 20% additional component would add around $0.02.

This additional portion could be used to buy back CTR from the market. The bought-back CTR could then be redistributed to CTR/xCTR stakers as rewards.

## Motivation

Today, Citrea uses cBTC as the gas token, which is fully aligned with its Bitcoin-native positioning.

However, this also means that CTR does not directly capture value from network usage. If Citrea activity grows significantly, it would be important for the CTR token to have a clearer economic link to that growth.

This is a common issue across many ecosystems: a network can become successful and generate activity, while the governance token does not always directly benefit from that usage. This can create weaker alignment between the success of the network, long-term holders, stakers, and governance participants.

Citrea has an opportunity to design a better model: keep cBTC as the native gas token, while giving CTR a clearer economic role in the growth of the network.

The mechanism would be simple:

Citrea usage → more fees → CTR buybacks → staking rewards → stronger long-term alignment.

## Why this could be valuable

This mechanism could:

- Create a direct link between real Citrea usage and CTR demand
- Make CTR/xCTR staking more attractive
- Reward long-term stakers and governance participants
- Give CTR a clearer economic role without replacing cBTC as the gas token
- Better align network growth with the people participating in Citrea governance
- Create organic buy pressure based on real activity, instead of relying only on temporary incentives
- Strengthen long-term confidence in the CTR token model

## User impact

Even with an additional component of 10% to 20% of the fee amount, the user impact would remain limited as long as Citrea’s base transaction fees stay low.

For example, on a transaction costing around $0.10 in fees, an additional 10% would represent around $0.01, and an additional 20% would represent around $0.02.

The goal is not to make Citrea expensive to use. The goal is to redirect a very small portion of network activity toward a mechanism that strengthens alignment between Citrea, CTR, and long-term stakers.

## Discussion

The exact percentage, buyback frequency, execution method, and reward distribution mechanism would need further governance and technical discussion.

A starting range could be between 10% and 20% of the existing fee amount, adjustable depending on network activity, user experience, and community feedback.

The buyback process should ideally be transparent and verifiable, with public reporting or on-chain tracking showing:

- Fees allocated to the mechanism
- CTR bought back
- Distribution to CTR/xCTR stakers
- Any changes to the parameters over time

The main goal of this proposal is to open an official discussion about whether Citrea should create a more direct connection between network growth, CTR utility, and long-term staking incentives.

 ![CTR-Fee-Based-Buyback-Mechanism](https://canada1.discourse-cdn.com/flex054/uploads/the_juice_box/original/1X/d9abd07ff051ce43c5dbcfa96b5dbb2ca4109d58.jpeg)