Fee flow
How fees are collected and distributed in the 4626 protocol.
Fee sources
Buy fee (6.9%)
When users buy ■TOKEN on a DEX, a 6.9% fee is collected and sent to GaugeController.
The ShareOFT classifies addresses to detect buys:
SwapOnlyaddresses (DEX pools/routers) trigger fees on outgoing transfersNoFeesaddresses (vault, controller) are exempt
V4 tax hook
For Uniswap V4 pools, a tax hook collects 6.9% in WETH, which is converted to ▢TOKEN for distribution.
Distribution
| Recipient | Percentage | Effect |
|---|---|---|
| Lottery | 69% | Funds jackpot for random prizes |
| Burn | 21.39% | Burns shares, increases PPS |
| Voters | 9.61% | Weekly rewards for ve4626 voters |
Lottery allocation
69% of fees fund the lottery jackpot. Buyers automatically enter. See Lottery for mechanics.
Burn allocation
21.39% is unwrapped to ▢TOKEN and burned, increasing price-per-share for all holders.
Voter allocation
9.61% goes to VoterRewardsDistributor. Voters claim pro-rata after each epoch. See Governance for details.
Day-1 configuration
Before governance is activated:
| Setting | Value | Effect |
|---|---|---|
voterRewardsDistributor | address(0) | 9.61% goes to treasury |
vaultGaugeVoting | address(0) | No vote-directed probability |
Treasury accumulates until governance activates.
Related
- Lottery - Jackpot mechanics
- Governance - Voting system
- GaugeController - Contract API