Buyback and Burn
Democratizing the Casino Through Tokenomics
SPIN IT implements a buyback and burn mechanism that democratizes the casino by sharing revenue directly with token holders and creating a deflationary system through systematic token burns.
Revenue Allocation
Casino revenue from bets made in Sonic and stablecoins will be used to support the SPIN token in the following ways:
- 50% Buyback and Burn: Half of the allocated revenue is used to purchase SPIN tokens from the market and permanently burn them, reducing the total supply and creating deflationary pressure.
- 50% Buyback for Stakers: The other half is used to purchase SPIN tokens which are then distributed to users who stake their SPIN directly on the site.
For example, if $100,000 is allocated to to this program:
- $50,000 is used to buy and burn SPIN
- $50,000 is used to buy SPIN and distribute to stakers
At a hypothetical price of $0.003 per SPIN, even a relatively small buyback can remove thousands of SPIN tokens from circulation forever, while creating buy pressure on the market.
Process
Users can stake their SPIN tokens directly on the SPIN IT platform through an easy-to-use interface. The entire buyback and burn process works as follows:
- Revenue Collection: Casino revenue is automatically collected in a dedicated treasury wallet
- Automated Buyback: Smart contracts periodically execute market buys of SPIN tokens using collected revenue
- Distribution Split:
- 50% of purchased tokens are sent to a burn address, permanently removing them from circulation
- 50% are distributed to staking contract, which distributes proportionally to users who have staked their SPIN tokens
Stakers receive rewards based on their percentage of the total staking pool. All processes are executed through autonomous smart contracts with manual intervention only if required.
Benefits
- Transparent Tokenomics: All buybacks and burns are recorded on-chain and viewable through our Dune dashboard (soon)
- Deflationary Supply: Regular burns decrease the total supply of SPIN over time
- Passive Income: Stakers earn a share of casino revenue without having to actively gamble
- Price Support: Continuous buybacks create reliable buying pressure on the token
The SPIN IT buyback mechanism represents a new standard for tokenomics in the casino space, where revenue directly supports long-term ecosystem growth rather than short-term gains.