> For the complete documentation index, see [llms.txt](https://docs.sweep.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sweep.finance/system-architecture/value-flow.md).
# Value Flow
Sweep operates on an activity-driven economic model where value is continuously generated and redistributed through user interaction.
Every action within the ecosystem contributes to a structured value flow that connects gameplay, transaction volume, token mechanics, and user rewards.
***
### **Activity creates volume**
All value within Sweep begins with user activity.
When users:
* Play games
* Interact with platform features
* Perform transactions
A measurable transaction volume is generated on-chain.
This volume forms the foundation of the entire ecosystem.
***
### **Volume activates the system**
Each transaction contributes to the platform’s total volume.
A fixed **5% protocol fee** is applied to this activity.
This fee is automatically split into two components:
* **2.5% is permanently burned in SWEEP**
* **2.5% is distributed to eligible users in USDT**
This process is executed through automated smart contract logic.
***
### **Distribution to users**
he distribution mechanism returns value directly to users through real-time USDT allocation driven by platform activity.
Each transaction contributes to the total volume, and a portion of that volume is continuously distributed to eligible users.
As activity increases:
* More USDT is generated through the distribution mechanism
* The value of each distribution cycle increases
* Users receive higher USDT rewards in real time
This means that rewards are not fixed or delayed.
The more the ecosystem is used, the more value is directly transferred back to users.
***
### **Deflation through burn**
At the same time, a portion of the generated value is permanently removed from circulation.
* Tokens allocated for burn are permanently destroyed
* The circulating supply is reduced over time
This introduces a deflationary effect that is directly tied to platform activity.
***
### **Continuous value loop**
The system is designed as a self-reinforcing loop:
* More user activity → higher volume
* Higher volume → more burn and distribution
* Increased rewards → stronger user engagement
* Stronger engagement → more activity
This loop ensures that value creation is not static, but continuously driven by real usage.
***
### **Why this matters**
Unlike traditional systems that rely on external funding or fixed reward pools, Sweep’s value flow is:
* Activity-based
* Transparent
* Automated
* Directly linked to user interaction
This creates a model where ecosystem growth strengthens both the token economy and user incentives simultaneously.
> Value in Sweep flows through a continuous cycle driven by user activity.
>
> Each interaction generates volume, which activates both distribution and deflation mechanisms. As the ecosystem grows, this cycle strengthens, creating a scalable and sustainable economic structure.
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