---
description: A Deflationary Mechanism to Unlock Value
---

# Buyback Mechanism



<figure><img src="https://3162264206-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fz4NYkstbF29KPDGWvEBt%2Fuploads%2FCKSHnspqyT4sw22230Or%2Fimage.png?alt=media&#x26;token=e4e9ff3d-0343-4499-ab0b-baa9b5039415" alt=""><figcaption></figcaption></figure>

#### **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.



#### Welcome to visit

[https://sft.network/#/Tokenomics](https://sft.network/#/Tokenomics)
