Tokenomics

$FUN Tokenomics

The $FUN Token

The $FUN token anchors the economic framework of the Sport.Fun ecosystem. It represents both the financial health of the network and the alignment mechanism between the platform and its participants.

$FUN is not an inflationary gameplay token and is not required to participate in the core fantasy experience. Instead, it is a fixed-supply ERC-20 asset that sits above the game loop and captures value from activity within the Sport.Fun ecosystem. All primary revenue originates from real marketplace transactions rather than token issuance. A portion of these revenues is systematically deployed into buybacks, which continuously remove $FUN from circulation and reinforce long-term scarcity.

Token Characteristics

• Token Type: ERC-20

• Total Supply: 1,000,000,000

• Inflation: None; fully fixed supply

• Primary Utility: Value capture via buybacks, trading fee rebates, early access features

• Economic Alignment: Every trade and fee on the platform contributes directly to token demand through recurring buybacks

This design ensures that token appreciation is tied to genuine platform usage. The more active the marketplace becomes, the greater the flow of revenue available for buybacks and the stronger the linkage between user participation and token value.

Incentive and Loyalty System

Sport.Fun rewards engagement through a balanced system that separates speculation and in-game progression. This model protects the integrity of gameplay while preserving token value over time.

Core Principles

1) Merit-Based Progression

• Players earn TP through in-game achievements, such as tournament performance and overall activity.

2) Non-Inflationary Rewards

• TP is generated exclusively through gameplay loops and cannot be purchased or traded externally. This ensures that skill and activity, rather than capital, determine progression. The team also plans to implement off-season TP rewards for certain sports markets such as the NFL to create incentives for holding player shares in the off-season.

3) Pack-Based Reinforcement

• TP can be exchanged for randomized player packs at escalating tiers—Pro, Epic, and Legendary. Each pack consists of existing athletes and varying share quantities, which encourage continued play and deeper portfolio construction.

4) Revenue-Linked Ecosystem

• All marketplace transactions incur a platform fee. These fees form the financial engine of Sport.Fun, funding operations, liquidity support, and $FUN buybacks. The model avoids the need for inflationary emissions by recycling genuine user-driven revenue back into the system.

5) $FUN Tiered Rebate Utility

• At launch, $FUN token holders will be able to maintain balances in their in-game wallet to unlock fee rebates across the platform. Users simply maintain $FUN balances in their game wallet, displayed alongside Gold and TP in the UI, and grants access to tiered benefits. Higher token balances qualify users for greater rebates on trading fees, with the 3% fee partially refunded significantly. This design rewards committed users while creating a natural incentive for accumulation.

6) Protocol Revenue Usage & Buyback Flywheel

• The recurring buyback program operates continuously, creating structural demand for $FUN. As platform usage grows, the magnitude of buybacks increases, aligning player participation with token appreciation. The buyback mechanism operates on a dynamic allocation model that reflects the platform’s maturity lifecycle. At launch, protocol revenue is distributed across three functions: 40% toward player economy buybacks (supporting liquidity and price stability in player token markets), 40% toward $FUN token buybacks (creating sustained token demand), and 20% toward operational expenses and marketing initiatives. This initial allocation acknowledges that early-stage markets require more liquidity to support and establish depth and reduce price volatility in player share trading. As the platform scales and organic market-making activity increases, the need for centralized liquidity provision diminishes. Consequently, the allocation model is designed to shift overtime: the percentage dedicated to player economy support decreases as natural market equilibrium develops, while the $FUN buyback allocation increases proportionally.

This incentive structure creates a healthy equilibrium. Gameplay generates revenue, revenue fuels buybacks, and buybacks strengthen the economy—all without undermining token scarcity or gameplay.

Token Allocation and Distribution

The $FUN token allocation balances strategic investment, team alignment, and ecosystem sustainability.

With a total supply of 1B, the $FUN token allocation is illustrated below:

Community: Reserved for long-term platform growth including future airdrops, liquidity incentives, partnership initiatives, and multi-sport expansion rewards; managed by Sport.Fun with programmatic distribution based on strategic priorities.

Genesis Airdrop: Facilitates initial token distribution to early platform users, community members, and supporters to reward early adoption and bootstrap network effects through liquidity; managed by Sport.Fun based on predetermined eligibility criteria including but not limited to: trading volume, referral activity, skill, TP earned, and account age.

Team: Incentivizes core contributors to ensure long-term alignment between team success and platform growth; managed by Sport.Fun. Includes tokens for future team expansion and strategic advisors.

Investors: Allocated to early funding rounds and strategic partners who provide capital and distribution, committed to the long-term term vision of the platform; controlled by individual investors based on investment agreements.

Treasury: Capitalization for operational expenses, technical development, marketing, and strategic investments; controlled by Sport.Fun with core leadership oversight.

Public Sale: Tokens reserved for community-focused public sale via Legion & Kraken platforms to broaden token holder base and balance institutional backing with community alignment; managed through Kraken platform & Legion smart contracts.

Vesting Parameters

Tokens allocated to the team and investors are subject to vesting schedules that align with the project’s growth horizon and long-term vision. The ecosystem fund ensures continuous support for tournaments, buybacks, and cross-sport expansion. A full breakdown of token vesting can be found in the Appendix.

Security and Compliance

The integrity of Sport.Fun’s systems depends on transparency and technical rigor.

All smart contracts undergo comprehensive third-party audits prior to deployment. These audits cover token logic, marketplace functions, and buyback execution. Audit results are publicly disclosed to reinforce community trust.

User assets are secured through a non-custodial wallet infrastructure via Privy using a trusted execution environment.

Sport.Fun complies with relevant jurisdictional guidelines on digital assets and data privacy. The project aims to maintain transparent operations that can adapt to evolving regulatory standards in both Web3 and traditional gaming sectors.

Appendix: Token Vesting Parameters