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:| Transaction Type | Fee | When Applied |
|---|---|---|
| Buy on Bonding Curve | 1% | Before graduation |
| Sell on Bonding Curve | 1% | Before graduation |
2. App Launch Fees
When developers launch new apps, they pay 110 ELTA:| Component | Amount | Destination |
|---|---|---|
| Seed Liquidity | 100 ELTA | Bonding Curve |
| Protocol Fee | 10 ELTA | Treasury → Rewards |
3. App Token Transfer Fees
App tokens include a 1% transfer fee (configurable, max 2%):| Parameter | Default | Maximum |
|---|---|---|
| Transfer Fee | 1% | 2% |
4. Tournament Fees
Tournaments collect fees from prize pools:| Fee Type | Rate | Destination |
|---|---|---|
| Protocol Fee | 2.5% | Rewards Distributor |
| Burn Fee | 1% | Burned (deflationary) |
The 70/15/15 Split
All protocol revenue is automatically split:Recipient Details
App Token Stakers (70%)
App Token Stakers (70%)
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.
veELTA Holders (15%)
veELTA Holders (15%)
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 (15%)
Treasury (15%)
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.| Amount | Destination |
|---|---|
| 990 ELTA | App Token Purchase |
| 10 ELTA | Trading Fee (1%) |
Step 2: Fee Distribution
The 10 ELTA trading fee is split:| Recipient | Share | Amount |
|---|---|---|
| App Stakers | 70% | 7 ELTA |
| veELTA Holders | 15% | 1.5 ELTA |
| Treasury | 15% | 1.5 ELTA |
Step 3: Staker Rewards
The 7 ELTA for app stakers is distributed proportionally: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
veELTA Yield
Your yield as a veELTA holder depends on:- Your veELTA balance relative to total veELTA
- Total protocol revenue across all apps
Claiming Rewards
For App Stakers
Rewards accumulate in the Rewards Distributor and can be claimed at any time:- Go to the app’s detail page
- Navigate to the “Rewards” section
- Click “Claim” to receive your ELTA
For veELTA Holders
veELTA rewards are distributed in epochs:- Go to the Rewards page
- View your claimable rewards
- 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:| Pool Size | Burn Amount | Winners Receive |
|---|---|---|
| 10,000 tokens | 100 burned | 9,650 (after fees) |
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
| Elata | Most DeFi | |
|---|---|---|
| Where yield comes from | Fees from usage | Printing new tokens |
| What happens over time | More usage = more yield | Dilution eats returns |
| Who wins | Long-term holders | Early farmers |
Key Numbers
| Metric | Value |
|---|---|
| Trading Fee | 1% |
| App Launch Fee | 10 ELTA |
| Tournament Protocol Fee | 2.5% |
| Transfer Fee (App Tokens) | 1% (default) |
| App Staker Share | 70% |
| veELTA Share | 15% |
| Treasury Share | 15% |