# 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:

1. More Pools → more trades/arbitrage → more fees
2. More fees → more RIFTS bought & burned
3. 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**.\ <br>

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