Project Description

Sparro Tokenomics

The Sparro Token has been designed to ensure sustainable growth, liquidity, and value for long-term holders and investors. The tokenomics of Sparro focuses on building liquidity, increasing the token's value over time, incentivizing community participation, and fostering ecosystem development. Here's a detailed breakdown of how the tokenomics structure works:

 

​Part 1: Liquidity Pool

1. Initial and Ongoing Liquidity Pool

Initial Liquidity Pool:
To provide initial liquidity and enable trading, 2.5 billion Sparro tokens will be allocated to the liquidity pool. This pool serves as the foundation for the token’s market price and stability.

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Gradual Liquidity Expansion:
Over time, an additional 2.5 billion Sparro tokens will be added to the liquidity pool in stages. This process ensures steady growth in the token’s value and market stability. The liquidity pool will ultimately represent 40% of the total supply (8.4 trillion tokens).

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2. Transaction Fee Distribution

Sparro applies a 1% fee for every transaction. The revenue generated from this fee will be used strategically to benefit the liquidity pool, token holders, and the development of the Sparro ecosystem. Here’s how the fee is distributed:

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75% (Liquidity Pool):
75% of the 1% transaction fee is directed to expanding the liquidity pool, ensuring that the token’s market presence and value grow over time.

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25% (Personal Expenses and Incentives):
The remaining 25% of the 1% transaction fee will be allocated to personal expenses, including paying for the studio office of sparronet.com, maintaining the platform, and incentivizing Sparronet users and new members. This helps ensure the sustainability and growth of Sparronet as a platform and ecosystem.

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Part 2: Administration of the Remaining 60% of Tokens
The remaining 60% of Sparro tokens (12.6 trillion tokens) will be allocated for various purposes that support the long-term development and success of Sparro. Here's how these tokens will be efficiently managed:

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1. Community Incentives (25% of Total Supply)

Purpose: To incentivize users and engage the Sparro community, 15%(of the total supply, 3.15 trillion tokens) of the remaining tokens will be used for staking rewards, airdrops, and participation bonuses. These programs will encourage users to hold and interact with Sparro tokens.

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Efficient Management:

Staking Mechanism: Implement a staking program where users can lock their tokens and earn rewards over time. This drives long-term engagement and reduces token sell pressure.
Airdrops and Rewards: Conduct periodic airdrops and offer rewards for active participation, such as referrals, contest winners, and community milestones.

Allocation:

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15%(of the total supply, 3.15 trillion tokens) will be allocated to staking rewards, airdrops, and participation bonuses

10% (of total supply, 2.10 trillion tokens) will be allocated to community incentives.

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2. Presale Bonus (5% of the Total Supply)

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Purpose: 

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The presale bonus is designed to incentivize early adopters of the Sparro Token by offering additional tokens during the initial fundraising phase. This approach aims to:

Attract investors and create initial market interest.

Raise funds to enhance the liquidity pool, ensuring price stability and market growth.

Lay a strong foundation for future token value appreciation and trading activity.

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Efficient Management: 

To maximize the effectiveness of the presale bonus:

Structured Phases: The presale is divided into multiple phases with gradually reducing bonuses, and motivating early participation.

 

Vesting Mechanisms: To prevent market dumping, a portion of the bonus tokens is vested, unlocking incrementally over time.

 

Transparency and Communication: Clearly communicate presale terms, allocation percentages, and bonus structures on the official website and promotional materials.

 

Liquidity Pool Contribution: Allocate the funds raised during the presale primarily towards the liquidity pool to boost market confidence.

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Allocation:

 

5% (1.05 Trillion of the total supply) will be allocated towards the presale

3. Development Fund (10% of the total supply)

Purpose: The development fund ensures that Sparro continues to evolve and innovate. This fund will be used for platform development, new features, partnerships, and ensuring the long-term sustainability of Sparro.

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Efficient Management:

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Create a development fund wallet with a milestone-based release. Tokens will be released based on achieving specific goals such as software updates, new partnerships, and ecosystem growth.

Allocation:

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10% (of total supply, 2.1 trillion tokens) will be allocated to the development fund.

3. Team and Advisors (5% of the total supply)

Purpose: Tokens allocated to the team and advisors will reward those who have contributed to the success of Sparro. This ensures the continued involvement of key players and experts in the development of the project.

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Efficient Management:

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Implement a vesting schedule for the team and advisors to ensure they remain committed for the long term. A typical vesting period could be 1–2 years with a 6-month cliff.

Allocation:

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5% (of the total supply, 1.05 trillion tokens) will be allocated to team and advisors.

4. Marketing and Partnerships (5% of the total supply)

Purpose: Tokens for marketing and partnerships will help raise awareness, expand the community, and increase Sparro’s presence in the crypto space. These funds can also be used for exchange listings and influencer partnerships.

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Efficient Management:

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Allocate tokens to strategic partnerships and marketing campaigns to drive user adoption and growth.

Allocation:

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5% (of the total supply, 1.05 trillion tokens) will be allocated to marketing and partnerships.

5. Reserve Fund (10% of the total supply)

Purpose: The reserve fund will act as a contingency to handle market fluctuations, support liquidity in times of high demand, or stabilize the price during market downturns.

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Efficient Management:

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Store the reserve fund in a multi-signature wallet and only access it when absolutely necessary.
Allocation:

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10% (of total supply, 2.1 trillion tokens) will be allocated to the reserve fund.

Summary of Token Allocation

Purpose Allocation (Percentage)    Tokens Allocated
Liquidity Pool 40% 8.4 Trillion

Community Incentives 25% 5.25 Trillion

Pre Sale Bonus 5% 1.05 Trillion
Development Fund 10% 2.1 Trillion
Team and Advisors 5% 1.05 Trillion
Marketing and Partnerships 5% 1.05 Trillion
Reserve Fund 10% 2.1 Trillion

End of contract

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