> ## Documentation Index
> Fetch the complete documentation index at: https://docs.strike.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# $SLP Distribution

Strike implements a **treasury-based rewards system** that automatically adjusts as the protocol matures, combined with a **loss cashback mechanism** (ie. losing trades accrue more rewards than winning ones).

## Money Flows

```mermaid theme={null}
graph TD
    A[Trader Opens Position] --> B{Trade Outcome}
    
    B -->|Profitable Trade| C[Receives Payout]
    C --> D[Mints SLP Tokens]
    
    B -->|Losing Trade| E[Funds Treasury]
    E --> G[Mints MORE SLP Tokens]
    
    H[Trading Fees] --> J{Treasury}
    J -->|< 10M USD| K[Pays Profitable Traders]
    J -->|\> 10M USD| L[Pays Profitable Traders  <br/>  + SLP Buybacks]
```

## Rewards Emission Schedule

Rewards emission automatically adjusts based on protocol treasury size:

<Steps>
  <Step title="Phase 1: Growth Phase">
    **Treasury \< 3M USD**: Maximum rewards to bootstrap liquidity

    * Attract early adopters
    * Boost treasury growth
    * Make sure profitable traders are paid
  </Step>

  <Step title="Phase 2: Transition Phase">
    **Treasury 3M-10M USD**: Linear decay in rewards

    * Gradual reduction as treasury grows
    * Balanced growth incentives to support larger size
    * Immediate settlement for profitable traders
  </Step>

  <Step title="Phase 3: Mature Phase">
    **Treasury > 10M USD**: Reduced rewards + \$SLP buybacks

    * Sustainable long-term rate
    * Rewards existing traders via buybacks
    * Protocol financial stability
  </Step>
</Steps>