Fee System

LiquidLaunch has a dual-phase fee system that changes based on token lifecycle:

1. Bonding Curve Phase: All fees go to protocol

2. Post-DEX Phase: Fees shared between creator and protocol

Trading Fees

Fee Rate

• Standard Fee: 1% (100 basis points) on all trades

• Applied to: Both buying and selling transactions

• Deduction: Fees are deducted from HYPE sent or received.

Bonding Curve Phase

Fee Distribution

During the bonding curve phase:

• 100% to Protocol: All trading fees go to protocol

• No Creator Share: Token creators receive nothing during this phase

• Real-time Collection: Fees collected with each trade

Why This Structure?

• Incentive Alignment: Encourages creators to build real demand

• Fair Launch: Prevents immediate fee extraction

• Community Focus: Creators must reach DEX to earn fees

Post-DEX Phase

Fee Sharing Model

After token graduates to HyperSwap:

• 50% to Creator: Token creator receives half of DEX fees

• 50% to Protocol: Protocol receives the other half

• Permissionless Claiming: Anyone can trigger fee distribution

Fee Accrual

Fees accumulate from:

• DEX Trading: HyperSwap pair trading fees

• Liquidity Provision: Yield from LP position

• Collected in Both: WHYPE and token amounts

Fee Claiming

claimFees Function

Anyone can claim accumulated fees:

function claimFees(address token) external returns (uint256 whypeReceived)

Claiming Process

1. Check Eligibility: Token must have graduated to DEX

2. Vault Interaction: Claims from delegated position vault

3. Fee Distribution: Splits between creator and protocol

4. Token Burning: Burns any received tokens (deflationary)

Bonding Fees

One-time Bonding Fee

When a token graduates to DEX:

• Total Fee: 20 HYPE

• Creator Gets: 5 HYPE (25%)

• Protocol Gets: 15 HYPE (75%)

Bonding Fee Purpose

• Creator Reward: Immediate payout for successful launch

• Protocol Revenue: Covers operational costs

• Quality Filter: Ensures only successful tokens graduate

Fee Monitoring

Check Claimed Fees

function getClaimedFeesAndBurnedTokens(address token) 
    external view returns (uint256 claimedFees, uint256 burnedTokens)

Preview Fee Claims

function previewClaimFees(address token) external returns (uint256 whypeAmount, uint256 tokensAmount)

Events

FeesClaimed Event

Emitted when fees are claimed:

event FeesClaimed(
    address indexed token,
    uint256 nftTokenId,
    address indexed claimer,
    uint256 whypeReceived,
    uint256 deployerShare,
    uint256 protocolShare,
    uint256 tokensReceived
);

BondFeeCollected Event

Emitted during bonding:

event BondFeeCollected(
    address indexed token,
    address indexed recipient,
    uint256 feeAmount,
    uint256 timestamp
);

Fee Distribution Details

Token Burning Mechanism

• Received Tokens: Any tokens received during fee claiming

• Burned Immediately: Sent to address(0)

• Deflationary Effect: Reduces total circulating supply

• Benefits Holders: Increases scarcity over time

Economic Incentives

For Token Creators

1. Short-term: 5 HYPE bonding fee upon graduation

2. Long-term: 50% of ongoing DEX trading fees

3. Success Alignment: Only successful tokens generate fees

4. Compounding: More usage = more fees

For Token Holders

1. Deflationary: Token burns reduce supply

2. Value Accrual: Successful projects benefit all holders

3. Quality Filter: Fee structure encourages quality projects