> For the complete documentation index, see [llms.txt](https://hyperspac3.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hyperspac3.gitbook.io/docs/revenue-model-and-profit-distribution/profit-distribution-framework.md).

# Profit Distribution Framework

HyperSPAC3 will allocate profits from these revenue streams to various uses based on the following framework:

1. **Reinvestment into the Project (50%)**:
   * **50% of the profits** will be reinvested into **acquiring additional businesses** and expanding the existing portfolio of RWAs. This ensures that the project continues to grow and compound value for the community.
   * A portion of these funds will also be used to strengthen the **liquidity pool** and facilitate the **staking rewards system**.
2. **Treasury Growth (20%)**:
   * **20% of the profits** will be allocated to the **treasury**, further capitalizing the project’s ability to make **new acquisitions** and grow its portfolio. This fund will also act as a **war chest** for strategic investments or to cover operational costs.
3. **Staking Rewards (20%)**:
   * **20% of the profits** will be distributed to **stakers** and liquidity providers as **staking rewards**. This incentivizes token holders to participate in governance and ensures a strong and active community.
   * Rewards will be distributed based on staking duration and token weight, allowing long-term holders to receive proportional rewards.
4. **Dividends to Token Holders (10%)**:
   * **10% of profits** will be distributed to **token holders** as **dividends**, paid out in a stablecoin (e.g., USDC) to provide a consistent and predictable income stream.
   * Dividends will be issued **quarterly** to ensure token holders benefit directly from the revenue generated by HyperSPAC3’s acquisitions.
