Economics

The SVM protocol charges fees that are shared between SVM token holders, the rewards pools and the treasury (see the distribution below).

Protocol Revenue:

• Funds from the initial player token sale are held in the treasury but are used for liquidity provision

• 20% share of the staking fees

• 20% share of trading fees

• Free liquidity can be invested in third party DEFI protocols to generate yield

Protocol expenses:

• 20% goes into the DAO treasury to fund DAO operations

• 40% is used to pay rewards to SVM stakers

• 30% is used to burn SVM tokens

Reward Pools revenue:

• Fees charged for staking

• The treasury provides liquidity for the DEX, which generates additional revenue from trading fees

• Extra allocations from the treasury

Reward Pools expense:

• 20% transferred to protocol treasury

• 50% used to pay performance payouts to staked token holders

• 30% used to buy back an burn palyer tokens

There is a separate reward pool for each competition. A Reward pool only collects fees from players that belong to that competition.