The Flywheel Model
The $ZERO ecosystem is built around a self-reinforcing cycle where MEV profits are captured, recycled, and redistributed to strengthen both the token economy and the community. This cycle is known as the $ZERO Flywheel.
At a high level:
MEV Bots Operate $ZERO’s MEV bots monitor Solana’s transaction flow using Jito relays and Jupiter swap routes. Profitable opportunities for sandwich transactions are identified and executed.
Profits Captured Every successful sandwich captures a small spread between a user’s swap and the bot’s transactions. These profits are collected into the $ZERO Treasury.
Rewards Distributed The treasury allocates profits back to $ZERO token holders through a transparent reward distribution mechanism.
Treasury Growth A portion of captured MEV is retained in the treasury to grow the foundation’s long-term reserves, ensuring sustainability even during low-MEV periods.
Compounding Effect As trading volume on Solana grows, MEV profits scale. This compounds the size of distributions, strengthening token value and community incentives — making the flywheel spin faster.
Flywheel Breakdown
Step 1 – Capture
Bots scan mempools for swap transactions.
Profitable sandwich opportunities are executed (front-run + back-run).
Profits are denominated in SOL/USDC.
Step 2 – Pooling
Profits flow into a centralized Treasury contract.
The contract separates allocations:
X% → Holder Rewards
Y% → Treasury Reserves
Z% → Operational Costs
Step 3 – Distribution
Rewards are distributed proportionally to $ZERO holders.
Snapshot or staking contracts determine eligibility.
Distribution frequency can be epoch-based or weekly.
Step 4 – Reinforcement
Retained reserves increase the Treasury’s power.
Larger reserves enable scaling of infrastructure, more bots, and improved execution strategies.
A stronger system → more profits → bigger rewards → stronger community.
Example Flow
A user executes a $1,000 swap on Jupiter.
$ZERO’s bot sandwiches the transaction, extracting $5 in MEV.
The $5 is sent to the Treasury contract.
$3.50 is distributed to $ZERO holders, $1 is retained in reserves, $0.50 covers operations.
Next epoch, holders receive proportional SOL/USDC rewards.
Why the Flywheel Matters
The $ZERO Flywheel ensures that every transaction on Solana contributes back to the community. Unlike tokens that rely on emissions or inflation, $ZERO’s rewards are backed by real, extracted MEV value. This makes the system both sustainable and scalable as Solana adoption accelerates.Beautiful documentation starts with the content you create — and GitBook makes it easy to get started with any pre-existing content.
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