Ctrlk
For the complete documentation index, see llms.txt. This page is also available as Markdown.
Page cover

💲Business Model

Spaace charges a 2% trading fee in ETH on all NFT sales performed on the platform.

There are two essential elements to Spaace's business model:

  1. Spaace redistributes 100% of its revenue to its community.

  2. Spaace rewards traders with daily Cashback rewards that have been designed to more than cover trading fees.

Spaace BETA will be made available pre-TGE and will thus not feature on-chain $SPAACE rewards. Also, fees will be set at 0.5% during that period of time.

🟧 100% Revenue Sharing in ETH

100% of ETH collected on trading fees will be redistributed to users who stake their $SPAACE tokens.

In other words, Spaace shares all of its revenue with stakers.

The more tokens a user stakes, the more ETH he will receive (the redistribution is proportional). For instance - if a user represents 10% of the total staking pool, he/she will earn 10% of Spaace's revenue.

This creates a strong incentive to stake the token and become eligible for daily ETH earnings via the fee redistribution mechanism.

🟧 Cashback Rewards

Not only does Spaace redistribute 100% of fees back to $SPAACE stakers, but it also delves into ensuring that paying fees is as painless as possible.

The distribution of Cashback rewards (see Cashback) serves two purposes:

  • Creating a strong incentive to trade NFTs on Spaace by making trades more profitable than any other platform on the market

  • Ensuring paying fees on every trade is made painless by giving enough rewards to more than cover the amount paid in fees.

Spaace's Cashback rewards will increase trading volume and fees spent in ETH on the marketplace.

This will, in turn, become daily buying pressure for the $SPAACE token .

🟧 Self-sustaining model

Spaace's business model and token economy have been designed to be as self-sustainable as possible with Staking fueling into Cashback, and Cashback fueling into Staking.

As per the above graphic, Spaace has thought its business model to be a virtuous cycle:

  • Distributing Cashback rewards increases NFT trading volume.

  • The increase of NFT trading volume induces a larger amount of collected fees in ETH.

  • A larger amount of collected fees in ETH makes staking $SPAACE more attractive so as to have access to that redistribution.

  • An increased attractiveness of Staking induces buying pressure for $SPAACE.

  • An increased buying pressure for $SPAACE increases its USD value on the market, making Cashback rewards more attractive.

  • More attractive Cashback rewards means trading NFTs is more appealing.

Last updated