Economics

The SVT protocol charges fees that are shared between SC 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

• 10% fee from Reward Pools

• There is a regular issuance of SVC that is sent to the payout fund. The inflationary pressure that is generated is compensated by the token burning. However the max supply of SVC is capped to 1B tokens.

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

Protocol expenses:

• 10% goes into the DAO treasury to fund DAO operations

• 60% is used to pay rewards to SVC stakers

• 30% is used to burn SVC tokens

Reward Pools revenue:

• Fees charged for staking and unstaking

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

• Extra allocations from the treasury

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

Rewards Pool payouts:

• 30% of the rewards are used to burn player tokens

• 70% are paid to the stakers of player tokens