Core Mechanism

20-40% of fees buy & burn $SPT

Every protocol fee - spot, options, prediction markets - routes a portion through the buyback controller. Acquired SPT is permanently burned. Supply only decreases.

Total Burned (Live) 0 SPT Counter activates at TGE

Bootstrap 20% fees → buyback

Months 0-12

Lower buyback rate during product bootstrapping - focus on LP and ecosystem incentives.

Fee split: 50% LPs / 20% Treasury / 10% Insurance / 20% Buyback

Growth 30% fees → buyback

Months 12-36

Mid-phase - buyback rate increases as protocol fee revenue stabilizes.

Fee split: 45% LPs / 15% Treasury / 10% Insurance / 30% Buyback

Mature 40% fees → buyback

Months 36+

Long-term steady state - maximum buyback rate, supply deflationary.

Fee split: 35% LPs / 15% Treasury / 10% Insurance / 40% Buyback

Failsafe

Buyback Reserve · 5% (25M SPT)

If quarterly fee revenue falls below $5M USD-equivalent, the Foundation deploys reserve tokens as trader incentives - never sold on market. Reserve is governed by 4-of-7 multisig and audited annually.