Revenue Model
Overview of the SparkDEX Revenue Distribution Model
SparkDEX’s revenue model generates and reinforces a self-sustaining value cycle between traders, liquidity providers, and $SPRK stakers. First, a fixed portion of all platform revenue is distributed directly to users in the form of liquidity and staking rewards, ensuring active participants are regularly rewarded for contributing to SparkDEX’s DeFi ecosystem.
Buyback and Burn Program
To complement staking and liquidity rewards, a separate portion of platform revenue is allocated to SparkDEX’s buyback-and-burn program, whereby $SPRK is purchased off the open market and immediately transferred to a designated burn address. SparkDEX’s buyback-and-burn program systematically reduces the $SPRK circulating supply and provides consistent, robust market support for $SPRK, allowing $SPRK stakers to reap the benefits of staking without bearing undue volatility risk. This dual-channel approach — rewarding stakers while reinforcing and stabilizing token value — creates a flywheel of growth and alignment, where trading activity drives token demand, token demand fuels staking participation, and collective participation sustains the platform’s long-term vitality and growth potential.
Here is how it works:
V3 DEX Trading Fees Distribution:
87.5% goes to Liquidity Providers.
5% goes to Staking Rewards (shared among xSPRK holders).
5% goes to Buyback & Burn of SPRK(benefits all token holders).
2.5% goes to the SparkDEX Foundation.
Perpetual Exchange Trading Fees Distribution:
40% goes to Liquidity Providers.
20% goes to Staking Rewards (shared among xSPRK holders).
20% goes to Buyback & Burn (benefits all token holders).
20% goes to the SparkDEX Foundation.
Summary: Why $SPRK?
The following pages explore the broad utility of $SPRK in greater detail — but here’s a quick overview to get you started.
Revenue Sharing
Earn from trading fees across DEX + Perps
Deflationary Pressure
Buyback & Burn = supply reduction = value growth
Launchpad Access
Premium allocations via SparkPad
Governance
Shape the future of SparkDEX
Trading Discounts
Save on fees, especially with leverage
Future Growth
Expanding ecosystem = expanding utility
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