rSPD Tokenomics Overview

3 min readSep 27, 2024

Introduction

At the heart of the SFT network lies its community — a collective dedicated to learning, building, and harnessing the power of DePIN (Decentralized Physical Infrastructure Networks). This network aims to bridge the gap between the real world and Web3. As such, the tokenomics of SFT plays a pivotal role in incentivizing contributions, governance, and the sustainable growth of the network. The early rSPD points were meticulously designed through comprehensive research to support and encourage the ongoing development of the DePIN ecosystem.

1. What is rSPD?

rSPD is the early points system of the SFT Protocol network. These points enable holders to access DePIN services, aligning more with network participation than traditional asset investment. By engaging with rSPD, users interact with the open-source provider ecosystem of SFT Protocol rather than directly with any particular company or institution.

Key functions of rSPD include:

• Allocating time and computational resources to DePIN service providers.

• After the mainnet launch, rSPD can be exchanged for the mainnet token at a 1:1 ratio.

2. The Utility of rSPD

rSPD has several important applications within the SFT network, offering both functional and governance-related benefits:

• Access to DePIN Resources: Holders can utilize rSPD to access computational resources and data within the DePIN network.

• Incentives: Users who contribute to the development of the SFT ecosystem can earn rSPD rewards as part of the incentive structure.

• Staking: rSPD can be staked within the network, allowing participants to earn proportional rewards from the ecosystem.

• Governance: rSPD holders have voting rights, enabling them to participate in decentralized governance and influence protocol upgrades and changes.

3. How Does rSPD Tokenomics Work?

Tokenomics refers to the economic system governing the issuance, distribution, and use of tokens. rSPD has a total supply of 100 million tokens, with the minting authority burned after issuance to ensure no additional tokens will be created.

Similar to Bitcoin, the security of the SFT network is maintained through economic incentives. Specifically, SFT Protocol rewards participants with rSPD points via an algorithm. Once the SFT Chain mainnet is launched and integrated into the DePIN network, validators will earn rewards by validating transactions and creating blocks, while provers earn tokens by contributing computational resources to generate proofs. This system ensures data security and the smooth operation of the DePIN network.

Token Distribution:

• SFT Chain: 50%

• Community Airdrop: 28%

• Liquidity: 10%

• Team: 8%

• Private and Institutional Investors: 4%

4. What is SFT Chain?

SFT Chain is a multi-chain platform, often referred to as the ‘Chain of Chains,’ designed to bridge physical infrastructure with Web3 applications. It is dedicated to building a DePIN platform that integrates storage, computing, and edge CDN services, driving innovation in decentralized applications. These applications offer secure device and data management while expanding the use of online services, ultimately delivering an enhanced user experience.

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