Fee Routing & Rewards

Every arena interaction generates fees that flow through the protocol. This system ensures fair distribution between creators, stakers, the treasury, and burn mechanisms.

Trading Fee

A 1% fee is applied to arena entries. This fee is split between the arena creator and the protocol's incentive pool:

Protocol Fee

A separate 15% protocol fee is collected from each arena entry. This fee is distributed as follows:

Protocol Fee (15% of entry)
├── 50% → Treasury
├── 20% → Operating Expenses
├── 20% → Staking Incentives
└── 10% → Buyback / Burn

Treasury (50%)

The largest share funds ecosystem development, partnerships, grants, and long-term protocol growth. Treasury spending is subject to governance oversight.

Operating Expenses (20%)

Covers infrastructure costs, platform maintenance, and operational overhead required to run the protocol.

Staking Incentives (20%)

Distributed to $CUC stakers proportional to their stake weight. This aligns token holders with protocol success.

Buyback & Burn (10%)

Used to buy back $CUC from the open market and permanently burn it, reducing total supply over time. See Deflationary Mechanisms for details.

Worked Example

A typical arena with 50 participants and a 50 USDT buy-in:

Total Entry Pool:    50 × 50 USDT = 2,500 USDT
Trading Fee (1%):    25 USDT (17.50 to creator, 7.50 to ACP)
Protocol Fee (15%):  375 USDT
  → Treasury:        187.50 USDT
  → Operations:      75.00 USDT
  → Staking:         75.00 USDT
  → Buyback/Burn:    37.50 USDT
Prize Pool (85%):    2,125 USDT

Reward Calculation

Staking rewards are proportional to your share of the total staked $CUC:

Your Reward = (Your Stake / Total Staked) × Staking Incentives Pool