# Incentive Loops

The correct design of the incentive loops is the cornerstone of an efficient and sustainable tokenomic logic where the Ethix represents the trust and reputation of the [Stakeholders ](/ethichub/en/key-components/stakeholders.md)who collectively contribute to the shared value generation model.

Under this logic, each party does what is best for the collective because it is best for itself:

* **Investors** participate because they **obtain a return while generating** **social** and **environmental impact**; 
* **Borrowers** repay loans because they **want to secure very favorable financing conditions** and **access to international markets** that are not affordable to them individually; 
* **Auditors** recommend trustworthy cooperatives because **it is their mandate to generate measurable impact.**

{% hint style="success" %}
**In the regenerative economy, everyone wins.**
{% endhint %}

<figure><img src="/files/3mMkexOrPo9tV8J2VDrU" alt=""><figcaption></figcaption></figure>


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