When looking at DeFi projects, I always ask one question: how much of the protocol's earnings are distributed to governance tokens? The Falcon Finance case is particularly interesting — on one side, there's a rapidly growing stablecoin business, and on the other, an independently operated FF token. What exactly is the mechanism of value transfer between the two?

**Self-Realization of Token Value**

The value system of FF actually operates like this: first, users are attracted by the stability of USDf and the yields of sUSDf, prompting them to deposit assets. Then, when they want to expand their operational scope — such as increasing USDf minting limits, obtaining higher yield multiples, or unlocking exclusive features — they must buy and stake FF. This action has two effects: first, it reduces the circulating supply of FF in the market; second, it turns traders into long-term participants.

Essentially, the price of FF is built on the demand to purchase and lease these functional privileges. As long as the core business of the protocol continues to grow, the demand for these rights persists, supporting FF's buy-side. This also explains why FF's price is highly correlated with the protocol's TVL and user growth data.

**From Internal Circulation to External Value Spillover**

But here’s the problem — while internal circulation can reinforce itself, it faces a ceiling. The real test is whether the protocol can convert profits from the stablecoin business into direct value feedback for the FF token.