Space’s Flywheel Mechanism creates a self-sustaining cycle that aligns platform growth with token value through an automated fee-to-value system. By channeling trading activity directly into $SPACE buybacks and burns, deflationary pressure is created which benefits all ecosystem participants.
All platform fees generated from trading activity are automatically split:
Buyback & Burn $SPACE
50% of Revenue
Protocol Treasury
50% of Revenue
This allocation is fixed in the smart contract and provides:
Immediate value return to token holders through supply reduction
Sustainable funding for platform operations, development and security
Transparent allocation with all transactions visible on-chain
Each component reinforces the others, creating compounding growth as the platform scales. The Flywheel Mechanism creates a virtuous cycle where platform success directly benefits token holders through:
Automated buybacks using TWAP for optimal execution
Permanent burns reducing supply continuously
Treasury funding ensuring platform growth
Transparent operations with public dashboard
Sustainable economics balancing value return and development
As Space grows, the flywheel spins faster - more users generate more fees, driving larger burns, increasing scarcity, attracting more users, and perpetuating the cycle. This alignment of incentives between users, traders, liquidity providers, and token holders creates a foundation for Space’s long-term success.
