A multi-layer utility token
Layer 1: Liquidity Mining
After seeding initial supply via the private sale, liquidity mining will commence to distribute SPDR to the community. In order to earn SPDR, users can contribute to the liquidity pools and receive the majority of SPDR that will be distributed this way. SPDR Liquidity Mining will go on for at least 10 years with multiple “halfenings” along the way that decrease rewards.
Layer 2: Liquidity Provider profits
LP tokens inherently grant profits to liquidity providers. For example, Uniswap pays out 0.3% of its volume to LPs. By participating in SPDR Liquidity Mining, investors not only benefit from the mining payout, but will also collect fees incurred by traders.
Layer 3: Utility Mining
Everyone dealing with blockchain, DeFi, and digital assets should be using a VPN. Spider VPN will offer a unique way to access its VPN network: By staking LP tokens. Providing liquidity is a service by the user for the entire community, and will not only be rewarded with liquidity mining rewards and LP profits but also with free access to the Spider VPN network.
Layer 4: SPDR Purchase Burns
Every time a purchase is made with SPDR tokens, 10% of tokens are burned. Purchases are always routed through a portal that swaps for tokens and completes the purchase that way.
Regular users will always purchase routers and services via the SPDR token, no matter what currency they use, through swaps. Due to the LAU model implemented, the high token velocity now actually adds to the overall SPDR utility, as every purchase burns tokens. Purchases also create volume and thus profits for LPs due to the Layer 2 utility described above.
The SPDR Utility journey
Over the lifetime of the SPDR token, the ratio of importance for the different Utility Layers will gradually shift from Liquidity Mining towards LP profits. As Liquidity Mining gradually recedes, the overall success of the business will move to the forefront of token utility. This is mirrored by SPDR inflation gradually slowing down and eventually crossing over into a deflationary era as Purchase Burns exceed the inflation introduced via Liquidity Mining.