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There are two fee mechanisms in the WINR Protocol.
- Swap fees are the fees collected when traders swap through the WLP with favorable fees to help balance the targeted weights. Swap fees are also generated when players want to get paid out in a different token than they are playing with.
- Buy/Sell WLP fees are collected when liquidity providers are adding liquidity to the WINR Liquidity Pool. These fees are lower if the purchasing token has less weight than the targeted amounts and higher when the input token is above the targeted weight.
All fees are stored in the Reward Router contract and distributed by a function that can be called by anyone paying the transaction fee. This function swaps the tokens to purchase WLP and then distributes WLP to the WLP holders and WINR/vWINR staking pool.
- 25% of the fees collected are distributed to the WLP holders
- 45% of the fees collected are distributed to the WINR/vWINR staking pool
- 15% of the fees collected are distributed to the buyback and burn address
- 15% of the fees collected are distributed to the core developers
The collected fees are converted to WLP to grow the liquidity pool constantly and accumulate revenues as the price of WLP increases with the pool revenue.