💵Profits
Revenue is distributed in a long-term, sustainable way via the protocol’s native token: Rifts
Current 'Growth' Model:
25% Buyback and Burn (RIFTS)
Buybacks: 25% of all fees collected (from arbitrage, swaps, flash loans, etc.) are used to buy RIFTS from the open market.
Deflation: A portion of these tokens are permanently burned, reducing supply and increasing scarcity.
Price Pressure: Consistent buybacks create continuous buy-side demand for the token.
This creates a snowball effect:
More Pools → more trades/arbitrage → more fees
More fees → more RIFTS bought & burned
Reduced supply → higher value for holders
75% Reinvested into Custom Pools
The remaining 75% of revenue is reinvested into:
High-performing Pools
Experimental index strategies
Stability funds to reinforce peg maintenance
These reinvestments support innovation, increase liquidity, and help bootstrap new asset classes and indexes. All actions are visible and verifiable on-chain.
Long-term 'Holder-Focused' Model:
To secure the most market adoption of the protocol, the previously mentioned model will be kept in the starting months of Rifts. However, the Long-term model, which is the Rifts team initial vision, is going to permanently replace it, since this maximizes potential profit for holders, while keeping growth at a constant growth phase. The long-term model refer to 75% of revenue going into buybacks with 25% going into pool re-investing/project treasury.
Last updated