Fees and revenue

Holder rewards

Reward-mode launches share a fee on every pool trade among the token's holders, paid in the pair token, starting at graduation.

#Reward mode

Reward mode is chosen at launch and cannot be changed. A reward-mode launch has no creator tax. Its holder fee is either 1% or 3% of each pool trade.

Rewards start at graduation. On the bonding curve, reward-mode launches pay only the normal base fee.

Rewards are always paid in the launch's pair token. For ETH launches, that is ETH.

#Who earns

Every holder earns in proportion to how many tokens they hold. There is no staking and no minimum balance.

Protocol contracts never earn, for example the curve, the pool and the locker. The protocol owner can also exclude a specific address from future rewards. Rewards it has already earned stay claimable.

#How rewards are counted

Tokens you receive start earning from the next block, not the block they arrive in. When you send tokens, your newest tokens are sent first, so your older holdings keep earning.

In each block, rewards are shared out based on who was holding at the start of that block. If holders sell during a block, their share of that block's rewards cannot be given to anyone else. That part goes to protocol revenue instead. So the holder fee is not always paid out to holders in full.

Rewards you have earned stay yours even after you sell all your tokens. They never expire.

Limits of the design. These rules stop the same-block tricks that were tested. They are not proven to stop every attack spread over several blocks.

#Automatic payouts

A payout operator pays holders automatically, roughly every five minutes. Each automatic payout:

• Goes to the holder's own address, in the pair token. For ETH launches it is paid in ETH.
• Deducts a small payout charge: the lower of 0.000001 ETH and 1% of the payout.
• Only happens if at least 0.0005 ETH is left after the charge.

A holder is paid at most once every five minutes. If a payment fails, the holder keeps their full balance, and other holders are still paid.

These are the current testnet settings. The protocol owner can change them.

#Claiming yourself

Holders can claim their rewards at any time, with no charge and no minimum. You pay the transaction's gas. You can send the rewards to any address. For ETH launches, you can choose to receive wrapped ETH (WETH) instead.

#After a migration

If a launch's liquidity moves to another venue (see Migration), trades in the old pool keep adding to the same rewards. Nothing you have earned is lost. In rare cases a claim asks for a one-time step to gather rewards from the old pool first. Anyone can carry out that step, at no charge.