13.37% of all earnings (after conversion to WAVAX) from the Protocol veNFT will be treated as ‘Protocol Fees’.
It can be broadly classified into 2 sections:
- Protocol-owned Liquidity
- Performance Fees
Half of the 13.37% of AVAX will buyback elSNEK from the market and be matched with the other half to create liquidity tokens of the elSNEK/WAVAX pair at SoliSnek.finance DEX.
After elSNEK is whitelisted by SoliSnek.finance Core Team, these LP tokens will be staked into its SoliSnek.finance gauge to earn SNEK. Earned yield will be re-compounded.
Note: Prior to the first DAO proposal for elSNEK, this part was used differently:
All of the SNEK earned from this staking will be given back to SoliSnek Voters as Bribes to attract further votes for our core pool (elSNEK/WAVAX).
The PoL allocation will be transitioned partially into Performance Fees during the later
Initially, there will be no direct fees taken out of the system by the Guru Network. All of the 13.37% will be allocated towards acquiring Protocol-owned Liquidity.
- There will be Zero Performance fee initially for atleast 2–4 months.
Once the system matures enough and there is sufficient liquidity, a part of the AVAX from the recurring 13.37% funding allocated for PoL building will be sent to our treasury as performance fee.
- Performance fee is capped at a max of 13.37% of AVAX earnings.
- This fees can only be taken from the PoL allocations.