# Introducing

**The Transaction-Backed Digital Assets Protocol** is an economic architecture designed to connect real-world business activity with on-chain digital asset formation through **automated market maker** (AMM)-based liquidity infrastructure.

In most blockchain ecosystems today, token value is primarily driven by speculative trading rather than underlying economic throughput. While decentralized finance has introduced new liquidity mechanisms, the structural connection between everyday transaction activity and digital asset valuation remains limited.

The **InterLink Foundation** introduces the **Transaction-Backed Digital Assets Protocol**, a framework that enables enterprises to tokenize their business activity on **InterLink Chain** with built-in **AMM liquidity infrastructure**.

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#### Key Features of the Protocol:

**1. First Transaction-Driven Business Tokenization Protocol**

This protocol introduces the first architecture that combines business tokenization with automatic AMM demand generated from real transactions. Any business can tokenize its economic activity while transaction flow continuously supports liquidity and market demand.

**2. Open Business Integration**

The protocol is designed to be permissionless and accessible. Any individual or organization that holds an InterLink ID can integrate their business directly with the **InterLink Payment Infrastructure**.

This allows businesses to connect their existing operations to the InterLink ecosystem, enabling on-chain transactions, transparent settlement, and programmable financial flows.

**3. Business Tokenization as Real-World Assets (RWA)**

Businesses integrated into the system can tokenize their economic activity on the **InterLink Blockchain**, converting their business value into tokenized **Real-World Assets (RWA)**.

Through this mechanism, businesses can represent revenue streams, assets, or economic participation rights as on-chain tokens. These tokens become tradable digital representations of real economic value.

**4. Automated Value Capture via AMM Mechanism**

To align on-chain value with real business activity, the protocol introduces an automated value capture model.

A portion of every transaction processed through the InterLink payment infrastructure is automatically allocated to purchase the corresponding business token from an **Automated Market Maker (AMM)** liquidity pool.

This mechanism creates continuous market demand linked directly to real transaction volume and business performance.

**5. Open Investment Participation**

External investors can participate in the ecosystem by investing in tokenized RWAs (business tokens).

Investment decisions can be based on transparent on-chain data, including transaction activity, business growth, and market demand.

**6. ITL as the Payment and Reserve Currency**

All trading pairs in the ecosystem are denominated through ITL, which functions as the core payment and reserve currency. Verified ITLG is the only mechanism to obtain ITL, ensuring a controlled and verifiable supply aligned with the InterLink human network.
