> For the complete documentation index, see [llms.txt](https://docs.silverswap.io/spiritswap-v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.silverswap.io/spiritswap-v2/tokenomics/overview/real-yield.md).

# REAL YIELD

The REAL YIELD model makes taking part in inSPIRIT more attractive, which in turn locks up more SPIRIT which in theory should have a positive impact on price movement due to scarcity. \
\
No matter what the SPIRIT emission rate is, as long as you have inSPIRIT locked, this mode ensures your % holding of the Market Cap will NEVER GET DILUTED!

How, might you ask ? Simple, from the emissions sent from the master chef, a portion of this is automatically redirected to the fee distributor rather than gauge proxies.

> For example: \
> \
> Lets say 100,000 SPIRIT is to be emitted this week \
> 500,000,000 SPIRIT total supply (at this point) \
> 200,000,000 SPIRIT is locked into inSPIRIT (at this point)
>
> (200,000,000/500,000,000)\*100,000 SPIRIT = 40,000 SPIRIT distributed to inSPIRIT holders this week (feeDistributor) and 60,000 SPIRIT sent to Gauges.

This ensures, inSPIRIT holders are getting a subsidized flow of the emissions to avoid them ever being diluted by farmers, making inSPIRIT more attractive.

This is REAL YIELD as it excludes additional inSPIRIT distributions for both the base fee and voting fee, meaning inSPIRIT holders now earn 3 ways.<br>

{% hint style="info" %}
**The Menage et trois (earn 3 ways):**<br>

* REAL YIELD subsidized emissions
* [Base fee](/spiritswap-v2/core-features/protocol-fees/vamm-fees-0.18.md) ( fees used to buy SPIRIT and distribute to inSPIRIT holders)
* [Vote fee](/spiritswap-v2/core-features/protocol-fees/vamm-fees-0.18.md) paid out in the form of LP tokens
  {% endhint %}

Essentially inSPIRIT holders are now earning double SPIRIT rewards via the REAL YIELD and base fee models PLUS LP rewards from the vote fee.

To further extrapolate on how the this REAL YIELD model works to avoid dilution, see the example below:

* Say I have 1,000,000 SPIRIT locked in inSPIRIT. In this SPIRIT distribution I would receive 200 SPIRIT.
* The total supply of SPIRIT has gone from 500,000,000 to 500,100,000. My holdings in SPIRIT went from 1,000,000 to 1,000,200.

> My market share before = 1,000,000/500,000,000 = 0.20% \
> My market share after = 1,000,200/500,100,000 = 0.20%

We’re emitting SPIRIT rewards to farmers to incentivize our system, yet inSPIRIT holders are incurring no dilution and earning REAL YIELD from swap/voting fees and bribes.

{% hint style="info" %}
This is an experimental iteration from the SOLIDLY ve33 system, but with the added improvement surrounding the fact that these rewards arent automatically locked back into inSPIRIT for you like SOLIDLY does (automatically locking your SOLID rewards back into the fNFT.
{% endhint %}

With any (3,3) model this also introduces an essence of game theory. Although we have given people “choice / options” by not automatically forcing these rewards to be locked, it would be to the detriment of the recipient to automatically dump these rewards, as this would in fact lead to some form of dilution, as such we expect the community will develop their own game theory around this model, locking a portion of this novel reward (so the REAL YIELD can continue to be profitable for them) and only taking profits from a portion of this. The exact ratio of this approach will eventually be discovered by the community.

We would like to stress that this IS an optional format and can be turned on/off while the system is in production. If the community doesn't like it, and the DAO vote to remove it, we can easily switch it off.


---

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