SpaceFi Tokenomics

4 min readApr 25, 2022

SpaceFi is the DeFi hub on zkSync Era with DEX+NFT+Spacebase+Launchpad, exploring the Layer2 ecosystem. This paper is our initial vision of SpaceFi tokenomics, including thoughts on distribution, incentives and governance, to allocate SPACE tokens to stakeholders most aligned with the strategic direction of SpaceFi.

📆 Token Release Schedule

SPACE is the utility and governance token of SpaceFi. The Max Supply of SPACE token is 50M on zkSync Era mainnet, with an initial supply of 10M SPACE at genesis for incentive, IDO and strategic reserves. This will balance early contributor incentives and future development needs to pursue long-term benefits with the community.

The daily emission can be adjusted to match the growth of SpaceFi (current daily emission: about 32,832 xSPACE on 2023.11.21). This will allow SPACE to reach the Max Supply of 50M. When reaching, the community can also decide to increase the emission if needed.

*As an initial distribution plan, the token emission, decay rate and schedule can be adjusted through governance.

The allocation of new token released

● 80%, to the community

70%, allocated to mining rewards, for liquidity rewards, staking, trading mining, etc.
10%, allocated to DAO treasury, through governance, for ecological construction, strategic cooperation, etc.

*The above ratio can be adjusted to coordinate short-term and long-term interests.

● 20%, to the dev team

If certain individuals on the initial development team are no longer part of the network, the community may choose to reclaim any unpublished tokens and redirect them to the new program.

🌟 xSPACE Token

xSPACE is a non-transferable escrowed governance token, which is converted by SPACE 1:1 locking with a 30 days unbonding period. If choosing to unbond xSPACE instantly, 50% SPACE will be converted back and the other 50% SPACE will be burned.

It can be earned from farming, or converting SPACE directly. xSPACE can be staked in farm to earn more xSPACE and be used in SpaceFi governance in the future.

🪐 Planet NFT

Planet NFT is a pass in the SpaceFi ecosystem, containing lots of SPACE assets and different usages. It can be minted by SPACE token (90% burned, and 10% is used as platform fee allocated to NFT bonus and DAO locked). There’re different levels of Planet NFT, including Common Planet minted by SPACE token, Unique Planet minted by different Common Planets and Exclusive STAR Sign minted by different Unique Planets. (SpaceFi NFT System)

Planet NFT holders can post the on-chain proposals. Both Planet NFT holders and xSPACE holders can vote in the governance.

⚔️ Token emission and deflation

● Emission:

Distributed by the block, new SPACE will be issued when the farm rewards is harvested. The harvested SPACE will be converted automatically to xSPACE as the reward.

● Deflation:

10% of the emission of block belongs to DAO, locked and used by community governance.
50% of SPACE will be burned if the xSPACE is unbonded instantly.
90% of Space Bridge fee (transfer rate) will be burned and 10% will be allocated to NFT Bonus (70%) & DAO (30%) in the original chain.
1/3 of the swap fee is used to buy back SPACE, 50% is directly burned and 50% is used as platform fee (70% for NFT bonus and 30% for DAO locked).
90% of SPACE paid for minting NFT is directly burned and 10% is used as platform fee (70% for NFT bonus and 30% for DAO locked).
5% of the NFT marketplace trading volume is used as platform fee (70% for NFT bonus and 30% for DAO locked).
90% of the SPACE paid for creating spacebases or increasing the quota of members will be directly burned and 10% will be used as platform fee (70% for NFT bonus and 30% for DAO locked).
For some single farm pools, if the rewards is harvested within 30 days, 50% of the rewards will be used as the platform fee (70% for NFT bonus and 30% for DAO locked).
Using LP tokens to raise funds for the project in Starter, the raised SPACE tokens will be burned.

📜 Conclusion

SpaceFi’s goal is a cross-chain web3 platform, starting with DEX+NFT+Starter+Spacebase. So we need a dynamically adaptable tokenomics to match future development needs. This will be achieved through governance. Our underlying principle is to incentivize key stakeholders and contributors, which in turn will inspire the SpaceFi ecosystem.

Thus, the token model is intended to be adapted and updated by the community over time. Such adjustments to the model can be proposed and voted on through on-chain governance. SPACE holders should feel empowered to change the token model of the chain as necessary to support their vision for the platform.

The previous adjustments of SpaceFi tokenomics:

2023.06.15: According to community discussions, the development of the bridge between zkSyncEra and Evmos is stopped and closed. The product and token will keep run separately on zkSyncEra and Evmos.

2023.05.06: According to community discussions, the Max Supply of $SPACE was cut from 600M to 100M (on zkSyncEra and Evmos).