# 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.

{% hint style="info" %}
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.
{% endhint %}

***

## :orange\_square: 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.

<figure><img src="/files/dijY6IPVqddyOCL3jjpT" alt=""><figcaption></figcaption></figure>

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

***

## :orange\_square: **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](/rewards/cashback.md)) 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 <mark style="background-color:orange;">**giving enough rewards to more than cover the amount paid in fees**</mark>.

{% hint style="success" %}
Spaace's Cashback rewards will increase trading volume and fees spent in ETH on the marketplace.

This will, in turn, become  <mark style="background-color:orange;">**daily buying pressure for the $SPAACE token**</mark> .
{% endhint %}

***

## :orange\_square: 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.

<figure><img src="/files/YUs7fauQPm9yfrZtzY1X" alt=""><figcaption></figcaption></figure>

As per the above graphic, Spaace has thought its business model to be a <mark style="background-color:orange;">**virtuous cycle**</mark>:&#x20;

* Distributing <mark style="background-color:orange;">**Cashback**</mark> rewards <mark style="background-color:orange;">**increases NFT trading volume**</mark>.
* The increase of NFT trading volume induces a <mark style="background-color:orange;">**larger amount of collected fees in ETH**</mark>.
* A larger amount of collected fees in ETH makes <mark style="background-color:orange;">**staking $SPAACE more attractive**</mark> so as to have access to that redistribution.
* An increased attractiveness of Staking induces <mark style="background-color:orange;">**buying pressure for $SPAACE**</mark>.
* An increased buying pressure for $SPAACE <mark style="background-color:orange;">**increases its USD value on the market**</mark>, making Cashback rewards more attractive.
* More attractive Cashback rewards means <mark style="background-color:orange;">**trading NFTs is more appealing**</mark>.


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