# The PROOF Flywheel The PROOF ecosystem is designed around a self-reinforcing economic loop we call The PROOF Flywheel. It aligns incentives between founders, the PROOF community, and the platform itself, creating compounding long-term value with every successful launch. At the core of this flywheel is our new revenue model, which allocates a portion of all launch-generated fees toward buybacks of the $PROOF token. This structural change strengthens the token economy, enhances chart performance, and accelerates growth across the entire ecosystem. {% embed url="" %} ### Old Model vs New Model Historically, our revenue split focused only on two areas: * Company operations * Revenue share with PROOF stakers This model worked, but it didn’t actively support the $PROOF chart or reinforce long-term token demand. Our new model introduces a third pillar: #### 25% of all PROOF revenue is now allocated to buybacks of $PROOF. This means: * Continuous buy pressure on $PROOF * A growing locked supply (through staking) * Healthier, more stable chart performance * Stronger incentives for both investors and new projects This shift turns every successful launch into a direct driver of long-term value for $PROOF holders. #### The Buyback Effect Every time a project launches through PROOF, the platform earns fees. A portion of those fees is automatically set aside to buy $PROOF from the open market.\ This creates steady, ongoing buy pressure, which helps support the token price over time. Here’s how the cycle works: * Each new launch generates fees * A portion of those fees are used to buy $PROOF * Buybacks support price appreciation * Higher token value attracts more attention * More attention leads to stronger teams launching * Stronger launches generate even more fees This becomes a compound loop where each new project strengthens the $PROOF token - and the stronger the token becomes, the more attractive PROOF is to both founders and investors.
### How the PROOF Flywheel Works The flywheel operates in eight repeating steps, each reinforcing the next: **1. Launch** A new project goes live through PROOF’s incubator. **2. Fees Collected** Volume and fees generated during the launch contribute to PROOF’s total revenue. **3. Locked Supply** People stake their $PROOF to receive their portion of the revenue share, increasing locked supply and reducing sell pressure. **4. Revenue Share Distributed** PROOF stakers earn a portion of all launch volume, enhancing long-term holding incentives. **5. Buybacks** A dedicated share of all revenue is used to buyback $PROOF from the open market. **6. Higher $PROOF Price** Consistent buy pressure and reduced circulation help strengthen chart performance over the long-term. **7. Increased Attention** A healthier chart draws more investors, KOLs, and communities into the ecosystem. **8. Attracting New Teams** Founders see the performance and support PROOF provides, leading to more applications, better projects, and an expanding pipeline. And then the cycle repeats - every new launch accelerates the entire ecosystem.
#### Why This Matters The PROOF Flywheel transforms the launch process from a one-time event into a perpetual value engine: * Founders win by accessing a launch partner that brings attention, liquidity, and long-term support. * Investors win through revenue share and strengthened token economics. * PROOF wins by attracting higher-quality projects, increasing volume, and scaling sustainably. And because buybacks are built into the model itself, the flywheel becomes self-propelling, compounding the benefits with each successful launch. Watch PROOF founder JP break down in full our recent changes to tokenomics and fee structures here: {% embed url="" %} --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.proofplatform.io/proof-token/the-proof-flywheel.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.