Understanding the Spartan Ecosystem

The operational framework for Spartan Arena draws inspiration from the business model of the very first model, the Olympus DAO. Understanding Olympus DAO is helpful in grasping Spartan Arena's mechanics and how payments are achieved.

Essentially, the Olympus DAO model is designed to emulate or mimic the economy of a nation. In national economies, newly minted currency often requires a backing fund, typically in commodities or gold, to maintain stability and prevent devaluation. This ensures the economy doesn't face bankruptcy. Similarly, Olympus DAO operates on a system where funds entering the protocol are used to mint new tokens, with a backing reserve, often in stablecoins like USDT.

For instance, if $10,000 is invested, it backs the minting of $10,000 worth of tokens. However, users receive tokens based on the current market price. If the token's market price is $10, an investment of $10,000 would yield 1,000 tokens. The remaining 9,000 tokens, based on the minted value, are held in a reserve pool. This reserve pool is the source from which both active and passive commissions are distributed, forming the core of the protocol's reward system.