Fee and Token Distribution

Overview

The protocol's economic model ensures fair distribution of both transaction fees and newly minted tokens between key participants in the ecosystem.

Distribution Breakdown

Transaction Fees

All transaction fees collected by the protocol are distributed as follows:

• 90% goes to the Sequencer (Operator)
• 10% goes to Token Stakers

Newly Minted Tokens

When users win bets, new tokens are minted. These tokens follow the same distribution pattern:

• 90% is allocated to the Sequencer (Operator)
• 10% is distributed to Token Stakers

Token Supply Mechanics

The protocol maintains a balanced tokenomics model:

• New tokens are only minted when users win bets
• Each token mint is balanced by corresponding token burns from lost bets
• There is no additional inflation mechanism beyond the betting-related mints
• The token supply remains neutral as mints and burns offset each other

This design ensures a sustainable economic model while incentivizing both operators and stakers to contribute to the protocol's security and efficiency.