Fees and where they go

The fees#

Action	Fixed fee
Wrap	1%
Unwrap	1%
Buy the log token in its pool	0.5%
Sell the log token in its pool	0.5%

These fees are fixed on-chain and shown on every log page.

Where they go#

1. 15% of every fee is burned as log tokens. That raises the backing of every log token still out there.
2. Any partner fee comes off next. Most logs have none.
3. The treasury share is 0%. Nothing goes to a treasury or the team.
4. The rest is swapped for $CHOP in the log's own pool. At launch every log is paired with $CHOP.
5. 20% of that $CHOP is burned.
6. The other 80% goes to farmers, in proportion to the liquidity they have staked.

While a log has no staked liquidity, 100% of the $CHOP that would otherwise go to farmers is burned instead.

Each log's page shows its own split, read live from the contracts.

An example#

A log sees 1,600,000 USDG equivalent of trading in a day, plus 200,000 USDG equivalent of wraps and unwraps. USDG is used only to make the example easy to compare; launch pools pair with $CHOP.

	USDG equivalent
Trading fees (0.5%)	8,000
Wrap and unwrap fees (1%)	2,000
Total fees	10,000
Burned as log tokens (15%)	1,500
Treasury (0%)	0
Swapped for $CHOP	8,500
$CHOP burned (20% of that)	1,700
Paid to farmers (80%)	6,800

This shows the value split. The number of $CHOP tokens received, burned and paid depends on $CHOP's market price. It assumes no partner fee and isn't a forecast.

Partner fees#

A log can send part of its fees to a partner, such as the project behind the wrapped token. It is 0% by default and at most 5%. The partner can lower that fee but can never raise it.