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Buyback Mechanism

A Deflationary Mechanism to Unlock Value

PreviousDAO Staking and Voting IncentivesNextHolders

Last updated 8 days ago

Revenue Generation

  • DePIN hardware infrastructure operates under a Proof-of-Work (PoW) mechanism, generating stable daily revenue.

Price Calculation and Conversion

  • Revenue assets are priced using time-weighted average price (TWAP) or volume-weighted average price (VWAP) models or via decentralized oracles, with conversion to USDT (U).

Fund Allocation and Buyback Execution

  • 50% of daily revenue is allocated to rSPD buybacks through the auction system.

  • The remaining 50% is paired with the repurchased rSPD to create liquidity pools (LPs).

  • All LP tokens are permanently burned (sent to a black hole address), ensuring locked liquidity and strengthening deflationary pressure.

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https://sft.network/#/Tokenomics