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Overview

Protocol fees come from trading, launches, and tournaments. They get split 70/15/15 and distributed to stakers, veELTA holders, and treasury. No token inflation — rewards come from actual usage.
Fee parameters can be changed through governance.

Fee Sources

1. Trading Fees (Primary Revenue)

A 1% fee is charged on all bonding curve transactions: Example: Buying 1,000 ELTA worth of app tokens costs 1,010 ELTA total (1,000 + 10 fee).

2. App Launch Fees

When developers launch new apps, they pay 110 ELTA:

3. App Token Transfer Fees

App tokens include a 1% transfer fee (configurable, max 2%): This creates ongoing yield even after graduation to DEX trading.

4. Tournament Fees

Tournaments collect fees from prize pools:

The 70/15/15 Split

All protocol revenue is automatically split:

Recipient Details

The majority of fees go to users who stake app tokens in staking vaults. Rewards are distributed proportionally based on stake size.How to earn: Stake any app token in its staking vault. The longer and more you stake, the larger your share of rewards.
A portion of all protocol fees flows to users who have locked ELTA as veELTA. This rewards long-term protocol supporters.How to earn: Lock ELTA for 7 days to 2 years. Longer locks receive boosted voting power (1x-2x).
Treasury funds support ongoing development, grants, and ecosystem growth initiatives. Treasury spending is governed by veELTA holders.What it funds: Developer grants, security audits, marketing, partnerships, and infrastructure.

Revenue Flow Example

Let’s trace a $1,000 ELTA trade through the system:

Step 1: Trade Execution

A user buys app tokens worth 1,000 ELTA on the bonding curve.

Step 2: Fee Distribution

The 10 ELTA trading fee is split:

Step 3: Staker Rewards

The 7 ELTA for app stakers is distributed proportionally:
If you’ve staked 1% of the total vault, you earn 0.07 ELTA from this trade.

Yield Calculations

App Staker Yield

Your yield as an app staker depends on:
  • Your stake size relative to total staked
  • Trading volume of the app token
  • Transfer volume after graduation
Formula: Annual Yield=Your StakeTotal Staked×Annual Fees×0.70\text{Annual Yield} = \frac{\text{Your Stake}}{\text{Total Staked}} \times \text{Annual Fees} \times 0.70

veELTA Yield

Your yield as a veELTA holder depends on:
  • Your veELTA balance relative to total veELTA
  • Total protocol revenue across all apps
Formula: Annual Yield=Your veELTATotal veELTA×Annual Protocol Fees×0.15\text{Annual Yield} = \frac{\text{Your veELTA}}{\text{Total veELTA}} \times \text{Annual Protocol Fees} \times 0.15

Claiming Rewards

For App Stakers

Rewards accumulate in the Rewards Distributor and can be claimed at any time:
  1. Go to the app’s detail page
  2. Navigate to the “Rewards” section
  3. Click “Claim” to receive your ELTA

For veELTA Holders

veELTA rewards are distributed in epochs:
  1. Go to the Rewards page
  2. View your claimable rewards
  3. Click “Claim veELTA Rewards”
There’s no deadline to claim rewards. Unclaimed rewards remain available indefinitely.

Deflationary Mechanics

Beyond fee distribution, Elata includes deflationary mechanisms:

Item Purchase Burns

When users buy items in apps, 100% of the payment is burned:

Tournament Burns

Tournament prize pools include a 1% burn fee:

App Token Supply Reduction

Over time, burns from items and tournaments reduce app token supply, benefiting remaining holders.

Growth Loop

More apps → more trading → more fees → better yields → more staking → more demand → more apps. Simple: usage drives rewards, rewards drive usage.

vs. Inflationary Models


Key Numbers


Next Steps

Stake App Tokens

Start earning 70% of trading fees

Lock ELTA

Earn 15% of all protocol fees