> For the complete documentation index, see [llms.txt](https://docs.sparkdex.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sparkdex.ai/tokenomics/revenue-model.md).

# Revenue Model

## The SparkDEX Revenue Model

SparkDEX generates revenue from three primary streams:

* **V4 DEX**
* **V3 DEX**
* **SparkDEX Eternal: Perpetual Exchange**

### Revenue Distribution

#### 75% goes to the SparkDEX DAO Treasury

* **75% of the V3, V4 and Perps generated fees go to the SparkDEX DAO Treasury.**
* **100% of the DAO Treasury allocation is used to buy back and burn $SPRK from the open market.**

This mechanism directly connects SparkDEX protocol activity with $SPRK supply reduction. As the protocol generates more fees through increased trading activity, a larger amount of revenue becomes available for $SPRK buybacks and subsequent burns.

#### 25% goes to the SparkDEX Foundation

* **25% of V4 DEX generated fees go to the SparkDEX Foundation.**

The Foundation allocation supports the continued development and operation of the SparkDEX ecosystem and is allocated across key areas including:

* **Development**
* **Operations**
* **Audits**
* **Integrations**
* **Ecosystem growth**

This allocation provides the Foundation with the resources required to maintain, improve, and expand the SparkDEX ecosystem over time.

***

### SPRK Emissions

* $SPRK holders who stake their tokens receive **xSPRK**, representing their staked position within the SparkDEX ecosystem.

**$SPRK stakers (xSPRK) receive 120,000 SPRK in weekly emissions.**

These weekly emissions provide an ongoing incentive for $SPRK holders to participate in the staking mechanism and support long-term engagement with the SparkDEX ecosystem.

***

### Buyback and Burn of $SPRK

Following the decision of SparkDEXs [Governance Proposal in May 2026](https://sparkdex.ai/governance/proposal/6a046cbecd38e8c7fea826ee), **100% of protocol fees are now allocated to the SparkDEX Buyback & Burn program**. Protocol revenue is used to purchase $SPRK from the open market, with the purchased tokens subsequently transferred to a designated burn address and permanently removed from circulation.

Under the updated model, **0% of protocol fees are allocated to staking rewards**. Instead, $SPRK stakers receive **120,000 $SPRK in weekly emissions**, providing a consistent staking incentive independent of the protocol’s fee distribution.

By directing all protocol fees toward Buyback & Burn, the model establishes a direct relationship between SparkDEX activity and $SPRK supply reduction: **as protocol activity and trading volume increase, more fees are generated and more $SPRK can be purchased and permanently burned**. This creates a long-term alignment between the growth of the SparkDEX ecosystem and the reduction of $SPRK circulating supply, while maintaining a predictable weekly emission for $SPRK stakers.

**Supply reduction scales directly with platform volume. More trading means more $SPRK burned.**

* As SparkDEX trading activity increases, the protocol generates more fees. Since 75% of V3, V4 and Perps generated fees are allocated to the DAO Treasury and 100% of that allocation is used for $SPRK buybacks and burns, higher platform volume can directly translate into increased $SPRK supply reduction.