Supra Automation is Live on Public Testnet, Starting the AutoFi Revenue Engine

Supra’s system-level automation is now live on public testnet.

This marks a shift in how blockchains function moving from being passive ledgers to proactive and self-executing systems. With automation built-into the Supra blockchain natively, instead of being an outside function performed manually by third party services, we’ve created a blockchain that can actively trigger and execute transactions when strategic conditions are met, without any external triggers. For next generation blockchains, Supra is the first to do automation on-chain like this.

Our innovative approach embeds system-level automation into DeFi’s core, transforming processes like arbitrage, liquidations, and lending. This enables us to recapture billions in value lost within DeFi, redirecting it to benefit users, developers, and node operators. 

This breakthrough introduces a transformative business model for Supra Layer 1, moving beyond reliance on transaction fees. By leveraging new automation-driven revenue streams, Supra can significantly outpace traditional fee structures, potentially eliminating block reward emissions and inflation within two years. This lays the groundwork for a new era in crypto, which we call AutoFi.

The Problem with Blockchain Automation Today and The Transaction Fee Model

For too long, blockchain economics have been constrained by two fundamental limitations. 

First, the transaction fees revenue model is not sustainable.

Throughput gains across chains are directly resulting in a decline in transaction fees, which is a good thing. We want that. But with transaction fees being a race to the bottom as L1s compete on cost, it’s nearly impossible to generate sustainable revenue. Even high-throughput chains processing thousands of transactions per second will struggle to generate meaningful income when fees are fractions of a penny. This broken economic model forces most L1s to rely on token inflation to fund security and development, creating a fundamentally unsustainable system.

Second, offchain blockchain automation systems are flawed. 

When it comes to automating crucial DeFi functions, there’s a structural separation between condition detection and action execution. Meaning that when a condition is met (like a price threshold for a liquidation being crossed), a separate entity (an external offchain automation or keeper network) must observe this and submit a transaction to execute the corresponding action. This architectural gap creates delays, enables front-running, and allows value to leak from the ecosystem through MEV extraction.

With system-level automation, Supra is about to solve both of these constraints for good.

Supra 2.0 and AutoFi: Pioneering Novel Revenue Models Through Vertical Integration

Supra 2.0 builds on the vertically integrated blockchain stack of Supra 1.0, a high-throughput Layer 1 with native oracles, smart contracts, and system-level automation, to introduce groundbreaking revenue models that redefine DeFi. This unique architecture enables AutoFi, a new paradigm where real-time onchain automation drives innovative revenue streams. Unlike traditional blockchain models reliant on transaction fees, MEV, or inflationary block rewards, Supra 2.0’s AutoFi captures value directly from DeFi activities such as arbitrage, liquidations, and lending, sharing it in real-time with node operators and dApp developers.

At the core of Supra 2.0 is zero-block delay execution, made possible by Supra 1.0’s vertically integrated stack. Automated tasks, powered by smart contracts and fast, secure price feeds from native oracles, execute in the same block when their conditions are met, thereby eliminating even a single block’s delay. For example, when a price threshold triggers a liquidation, the corresponding transaction occurs instantly within that block. This real-time onchain automation, embedded at the system level, is the foundation for Supra 2.0’s novel AutoFi revenue models. 

These models are projected to fully replace block rewards within two years, significantly reducing token inflation and creating a more sustainable, rewarding ecosystem for node operators and dApp developers.

AutoFi Revenue Streams: The Revenue Engine of Supra 2.0

AutoFi introduces an entirely new economic model for Layer 1 blockchains. Traditional L1s rely primarily on transaction fees, which creates a race to the bottom as chains compete for volume while fees trend toward zero. Even with high throughput, this model struggles to generate sustainable revenue.

With AutoFi and Supra 2.0, our approach is fundamentally different. AutoFi shifts the revenue model from transaction fees to automation value capture — a significantly larger and more sustainable revenue stream.

Here’s how it works:

1. Automation Task Fees: Users register automation tasks that execute precisely when specified conditions are met. These tasks generate base fees that are already more lucrative than standard transaction fees.
2. Competitive Auctions: For high-value opportunities like liquidations or arbitrage, users bid for execution priority. When a $1M position faces liquidation with a $10K fee, users might bid up to $9K to capture that opportunity – generating significant revenue in a market-driven model similar to Google’s AdSense.
3. System-Level Automation: Any opportunities not captured by users are automatically executed by the protocol itself, with profits distributed to ecosystem stakeholders rather than leaking to external extractors.

Value Redistribution and Revenue Sharing

Perhaps the most transformative aspect of AutoFi is how it redistributes captured value as system-level revenue share across the Supra ecosystem. Rather than allowing MEV, arbitrage, and liquidation profits to flow to external actors, AutoFi will capture this value at the protocol level and redirect it to strengthen the entire ecosystem:

• 25% to DeFi Applications: Protocols where automation opportunities originate receive a quarter of the revenue, creating a powerful new income stream they’ve never had before.
• 25% to Node Operators: Validators earn sustainable revenue that doesn’t depend on toxic MEV extraction, aligning their incentives with ecosystem health.
• 50% to Protocol Treasury: Half of all automation revenue builds the treasury, creating protocol-owned liquidity that fuels ecosystem growth and potentially eliminates the need for inflationary token emissions.

This model creates a virtuous cycle: better execution quality attracts more activity, which generates more automation revenue, which strengthens infrastructure and further improves execution.

Why This Matters

The implications extend far beyond a new revenue model. AutoFi creates:

• Democratized Execution Quality: Institutional-grade execution becomes available to everyone, not just those with technical advantages.
• Safer DeFi Markets: Instant liquidations and arbitrage prevent cascading failures and reduce systemic risk.
• New Application Primitives: Same-block execution enables application types that were architecturally impossible before.
• Market Self-Regulation: Markets maintain efficiency through automated operations rather than requiring constant external intervention.

The Roadmap Ahead

With automation now live on testnet, we’re entering the final phase before mainnet deployment. This testnet period is crucial for stress-testing the system, gathering feedback, and fine-tuning the economic parameters that will govern the AutoFi ecosystem.

We believe that what we’re building isn’t just an improvement to existing systems, but a fundamental rethinking of how blockchain transactions and economics function. By moving automation from an external service to a protocol-level primitive, we’re creating a more efficient, fair, and profitable ecosystem for all participants.

The testnet launch is just the beginning. In the coming months, we’ll be expanding the AutoFi stack with additional primitives including:

• Auto-Lending at competitive rates
• Auto-Liquidity provision based on market needs
• Auto-Risk management to dynamically adjust protocol parameters

Together, these components along with a full stack of revenue generating AutoFi primitives will form a coordinated, living financial system – one that thinks, protects, and reallocates in real time.

Try System-Level Automation on Supra Today

We invite developers, DeFi protocols, and blockchain enthusiasts to experience system-level automation on our testnet. The docs are live. The CLI is up. The network is ready for you.

Your feedback will be invaluable as we prepare for the full mainnet launch of AutoFi. If all systems run smoothly as intended, we should be able to ship to mainnet in 30-45 days.

This is the beginning of a new era in decentralized finance: The AutoFi era. We are moving from reactive to proactive systems, from value extraction to value capture and revenue sharing, and from passive ledger chains to a living financial ecosystem that acts autonomously in the interests of its participants.

This is the automated future of crypto. And we’re here to build it with you, for you.