> For the complete documentation index, see [llms.txt](https://spree-finance.gitbook.io/spreefinance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://spree-finance.gitbook.io/spreefinance/how-it-works/tokenomics.md).

# Tokenomics

### SP Token

SP (Spree Points) is the only token in the Spree system. There is no governance token.

| Property  | Value                                   |
| --------- | --------------------------------------- |
| Standard  | ERC-20                                  |
| Decimals  | 18                                      |
| Supply    | Unlimited (minted and burned on demand) |
| Backing   | 1:1 by stablecoins in CollateralVaults  |
| Transfers | Restricted to whitelisted addresses     |

SP supply expands when users deposit stablecoins and contracts when users redeem. There is no fixed supply cap. A CollateralVault holds one stablecoin for every SP in circulation, verified by on-chain invariant checks.

### Branded SP

Each brand can deploy its own ERC-20 token through the PointsFactory. Branded tokens:

* Are 1:1 backed by base SP locked in the PointsFactory
* Have their own name and symbol (e.g., "FLY Points", "EVENT Rewards")
* Support EIP-2612 gasless approvals
* Have no transfer restrictions (unlike base SP)
* Are interoperable through base SP as a bridge asset

Branded tokens do not have a separate supply model. Every branded token maps to one locked SP.

### Pending SP (pSP)

pSP is an ERC-20 token managed by the PendingSPVault. Every pSP exists within a campaign context, and the PendingSPVault holds SP 1:1 behind each pSP.

| Property  | Value                                 |
| --------- | ------------------------------------- |
| Standard  | ERC-20 (campaign-scoped balances)     |
| Decimals  | 18                                    |
| Supply    | Limited by campaign budgets           |
| Backing   | 1:1 by SP in PendingSPVault           |
| Transfers | Campaign-scoped, whitelist-restricted |

Settlement burns the pSP and releases the underlying SP. Expiration burns the pSP and recycles the SP into the campaign budget.

### Token Flow

```
Stablecoins (USDC, etc.)
        │
        │ deposit
        ▼
   ┌─────────┐
   │   SP    │ ←── 1:1 backed by stablecoins
   └────┬────┘
        │
   ┌────┼────────────────────┐
   │    │                    │
   ▼    ▼                    ▼
┌──────┐ ┌──────┐      ┌─────────┐
│Brand │ │ pSP  │      │ Rewards │
│Tokens│ │      │      │  Vault  │
└──┬───┘ └──┬───┘      └────┬────┘
   │        │               │
   │    settle / expire     │ revenue
   │        │               │
   │        ▼               ▼
   │     SP released    Bonus Rewards
   │     or recycled    (at brand discretion)
   │
   └──► Interop: Brand A Tokens ↔ SP ↔ Brand B Tokens
```

All value flows through SP. Stablecoins enter the system via minting. SP circulates through branded tokens, conditional rewards, rewards vaults, and lending markets. Stablecoins exit the system when SP is redeemed.