Revenue Model
HYFY generates revenue from Space Credit purchases through the App Store, Google Play, and web checkout. A portion of that net revenue, after store fees, flows into the on-chain economic system every month.
The Split
- 60–75% funds company operations (infrastructure, team, development)
- 25–40% flows into the Revenue Allocation Pool, powering four on-chain mechanisms
The exact allocation percentage scales with platform growth milestones and revenue volume. As the user base and revenue increase, a larger share is directed toward the token ecosystem to strengthen user rewards, liquidity depth, and treasury backing.
Revenue Allocation Pool Distribution
| Pool | Allocation | What It Does |
|---|---|---|
| User Claims | 50% | Funds the monthly Karma → HYFY conversion for verified users |
| Treasury Growth | 30% | Adds to operational reserve, strengthening future claim backing |
| Liquidity | 10% | Deepens the DEX liquidity pool monthly for better trading |
| Burns | 10% | Permanently removes HYFY from circulation, reducing supply |
Every dollar spent by users directly funds the ecosystem's health. Claims, liquidity, and deflation are all tied to real revenue, not speculation or artificial token printing. If revenue is low, operations scale proportionally down with no unsustainable promises and no hidden inflation.
A Worked Revenue Example
To illustrate how revenue flows through the system, consider a simplified hypothetical month where the platform generates $10,000 in net revenue from Space Credit purchases.
| Step | Amount |
|---|---|
| Net Revenue | $10,000 |
| Platform Operations (60–75%) | $6,000 – $7,500 |
| Ecosystem Allocation (25–40%) | $2,500 – $4,000 |
Using the base 25% allocation ($2,500 ecosystem pool):
| Pool | % | USD | HYFY Equivalent |
|---|---|---|---|
| User Claims | 50% | $1,250 | Calculated at month-end price |
| Treasury Growth | 30% | $750 | Added to reserve |
| Liquidity | 10% | $250 | Paired with USDC on DEX |
| Burns | 10% | $250 | Permanently destroyed |
The HYFY equivalent for each pool is calculated at the end of each month using a time-weighted average market price, protecting against price manipulation.
How Your Claim Is Calculated
At the end of every month, the protocol calculates how much HYFY is available for that month's distribution. This pool is distributed proportionally among all verified claimants based on their eligible Karma.
Conceptually:
Your HYFY = (Your Eligible Karma / Total Eligible Karma Claimed That Month) × Monthly HYFY Pool
This means:
- Users with more Karma earn proportionally more HYFY
- No single user can capture a disproportionate share of the monthly pool
- Total HYFY distributed in any month is always bounded by treasury health and platform revenue
- Lower participation in a given month means each claimer receives a higher share; higher participation spreads rewards more broadly
The monthly pool size is determined by calculations that account for revenue, treasury reserves, and system health. Full methodology is available to auditors and published in monthly transparency reports.