Source and distribution

Revenue Source

Protocol revenue originates from tax mechanics implemented outside of the governance layer. These mechanics may include transaction fees, trading taxes, platform fees, or other predefined revenue generating activities tied to the ecosystem.

All collected ETH is routed to the Tax Distributor contract.

The Tax Distributor acts purely as a treasury router. It does not generate revenue itself and does not participate in governance decisions. Its sole responsibility is to securely hold accumulated ETH and execute structured daily distribution according to predefined rules.

By separating revenue generation from revenue distribution, the protocol achieves:

• Clear accounting boundaries

• Reduced complexity per contract

• Improved auditability

• Lower systemic risk

All ETH intended for distribution accumulates inside the Tax Distributor until the daily distribution function is executed.

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Daily Distribution

Revenue distribution occurs at least once per day.

The distribution function is called by the contract owner or an authorized automation agent. In practice, an automated script ensures the function is executed at least once every 24 hours, providing predictable and consistent reward cycles.

When distribution is triggered, the total available ETH balance inside the Tax Distributor is split according to a fixed ratio:

• One third is transferred to the team wallet

• Two thirds are allocated to proposals

The portion allocated to proposals is divided equally among the top five ranked proposals at the time of distribution.

Ranking data is pulled directly from the Voting contract using the getTop5Proposals function. This ensures that revenue allocation always reflects the current capital distribution.

If fewer than five proposals exist or qualify for ranking, the proposal allocation portion is divided evenly among the available proposals. The system dynamically adapts without requiring manual adjustment.

This structure provides several advantages:

• Predictable daily reward cycles

• Transparent and verifiable revenue routing

• Direct connection between capital allocation and income access

• Continuous competitive pressure to remain within the top five

Because distribution is based on current ranking at the moment of execution, proposals must maintain sufficient stake to remain eligible. Falling below the top five threshold results in loss of revenue access until capital support increases again.

The daily cycle creates rhythm without introducing rigid epochs. It preserves flexibility while maintaining operational structure.