# $SPEC Tokenomics

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The **Speculation Token (SPEC)** serves as the native utility and governance token within the Speculation ecosystem. It powers platform operations, incentives, and value distribution through a transparent, deflationary model designed to reward holders and support long-term sustainability.

### Buyback and Burn Mechanism

Speculation operates a **100% buyback and burn** policy for transaction fees generated on the platform.\
Every time users pay trading or platform fees, the amount in USDC is used to **buy SPEC from the open market** and **burn it permanently**, removing it from circulation.

This mechanism directly ties platform activity to token scarcity, ensuring that higher usage results in greater token deflation and long-term value support for holders.

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### Token Structure

Each SPEC transaction is subject to an **8% transfer tax**, which is automatically distributed across key ecosystem components to maintain liquidity, reward participants, and fund development.

#### Tax Distribution (per transaction)

* **3%** → **Developers**

  Supports ongoing platform development, infrastructure, and technical operations.
* **3%** → **Holders**

  Distributed proportionally among all token holders as passive rewards.

> *Total Transfer Tax: 6% per transaction*