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Magic Sprite is a special ability used to increase Hero experience gains to unlock titles and possible Medal levels. The UI for this ability can be found next to Spells in the appropriate page of Hero interface.
Magic Sprite level uses different shared resources - Spars, Elements, and eventually Runes - but also a specific resource, Magic Springs. Magic Spring cannot be found in-game for the moment and is only granted via special events.
The first upgrade "enabling" Magic Sprites costs 30 Magic Springs, 200 Spars and 300 Elements, and grants your Hero a 1% Experience Earning Bonus. Further upgrades are less expensive but the level-up is steadily higher. Raising Magic Sprites from level 9 to level 10 (10% Experience Bonus) costs 90 Magic Springs, 160 Spars, 208 Elements and then 60 Runes, and all further levels require Runes.
Magic Sprite level has no visual effect in the game. Magic Sprite level cannot be reset nor decreased, so resources allocated to Magic Sprite are basically lost.