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Sprung and Unsprung weight 101.
Unsprung weight is the lower half of your forks, brake disc and caliper, and entire front wheel/tire/axle assembly. Same for the rear wheel/tire/axle assembly, brake and caliper, the swingarm up to the shock mount or half the arm, whichever distance is greater, and the lower half of the monoshock. All the rest of the bike is considered Sprung weight.
The less Unsprung weight you have the better the bike will handle/steer/ride/jump etc.. And this applies to all motorcycles, street and offroad. More rigidity wasn't the only reason manufacturers went to USD forks and lighter slotted braking systems.
So to answer your question yes, the tightly wound portion of the spring goes to the top of the fork. As Megadan mentioned above, will it really matter on this little bike that that only has a top speed of 60mph? Probably not, but if you got a chance to do it right why wouldn't you?
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