SPARTA

Information on the $SPARTA token

The SPARTA Token

SPARTA is a deflationary token with several use cases inside the Spartan ecosystem. To give the protocol maximum legitimacy from genesis, it is important that SPARTA tokens distribute as widely as possible. To help facilitate this, the only way to acquire the initial tokens is through Proof-of-Burn and Bond. No airdrops, no private/public sales, and no free handouts, not even for the contributors!

Tokenomics

Initial supply distributed using Proof-of-Burn and Bond.

Maximum supply of 300 million.

The remaining supply will flow to liquidity providers and good peers within the ecosystem via the reserve contract, with the supply curve starting at 30% annual emission of the remaining supply, ending up at 3% after 10 years.

The emission plan means that the total supply cap of 300,000,000 will never be reached, and due to the logarithmic decline of tokens issued, the earlier you invest, the better rewarded you are.

Sparta is emitted once per day, to the reserve contract who controls the flow of that SPARTA via the incentive streams to the pools and end-users. The current incentive streams for V2 of the protocol include:

  • Dividends: Injected into active pools (compounding)

  • DaoVault: Stake LP tokens for SPARTA yield

  • SynthVault: Stake Synths for same-Synth yield (compounding)

Deflationary Aspects

The upgrade of the base SPARTA contract to V2 provided a chance to integrate deflationary aspects into the protocol. One such idea was a fee-burn on all transfers of the token as seen below:

What does this mean? Well, with the V2 SPARTA token; any time someone transfers their tokens from one wallet to another; there will be a burn off of some that SPARTA from the supply. This runs almost inverse of the supply curve (but linear instead) in that the deflation becomes more aggressive as the supply gets larger whilst the incentives become less aggressive.

Set to be between 0% (min supply) and 1% (300M max supply); it will not be possible to ever reach 1%. Rough estimations place the max fee-burn per transfer somewhere around ~0.7% years down the track. The fee calculation is however linear and can be disabled by the DAO in the event that it gets in the way of utility within the ecosystem.

Proof-of-Burn

To provide initial base value to SPARTA, tokens of value must be burned to get them. We can compare this to a Proof-of-Work mechanism like in Bitcoin, where costly resources and time are expended in exchange for a BTC block reward. The receivers of this BTC are not going to be happy to sell below the cost of their expenditure, which sets the base value in the market.

When individuals have to sacrifice tokens of value and their time to obtain SPARTA, it also pushes them to research and align themselves with projects that show true value and thus, are more likely to be supportive peers within the ecosystem. We believe that once you see what the Spartan Protocol can bring to the world of DeFi, there is no going back!

Bond

Bond is another novel distribution idea from the Spartan Protocol community. This allows users to lock funds into the bond contract for a period of time. When locking in tokens, the equivalent amount of SPARTA will be released and locked into the contract alongside your tokens. This contract will give the provider 100% of their bonded units back over 6 months (plus the whole SPARTA amount added alongside), of which you can harvest as often as you like. Sounds confusing? see below an example of Bond & Mint:

Scenario:

  • Bob sends $1,000 through the bond contract

  • $1,000 worth of SPARTA is minted (at swap value)

  • ~$2,000 worth of assets get locked into the SPARTA:BNB pool

  • 0% goes to Bob straight away

  • 100% is vested to Bob over 6 months (can claim as often as he likes; it is calculated every second just like the harvest feature)

Distribution:

Recent Snapshot of Token Distribution shows wide and varied distribution

It is possible to see from BscScan’s top 100 holders of SPARTA that things are already looking widely distributed. The contributors desire this continuing to widen as the features expand from V1 to V2. The key desire is to maximise decentralisation and encourage as many individuals to provide liquidity as possible.

No Airdrops / No Founders Tokens

When someone receives an airdropped token, their value to that peer is $0.00 as it cost them nothing. They are therefore more than happy to sell it straight away below market value, which applies selling pressure in that market. No SPARTA will ever be given away in an airdrop.

There have been way too many rug-pulls and cash-grab copycats go live in recent months. These kinds of projects will continue to come and go. We see Spartan Protocol as a fight against this nonsense; a community-driven project where the only way to be involved is to stump up your own capital. This means there is no rug to pull. Everyone is incentivised to achieve success for the project. No uneven benefits.

Spartan Protocol contributors do not receive any payments or privileges.

No private or public sales.

Remaining tokens can only be obtained by good peers within the ecosystem.

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