Launch and fees¶
Every strategy launches the same way: the same supply, the same curve, the same pool, the same fees. Nothing is set aside for anyone.
The launch¶
1,000,000,000 tokens are created once and placed on the strategy's own bonding curve. The curve opens at a valuation of 1.68 ETH, about $4,600, and every buy moves the price up.
When buyers have put 4.2 ETH into the curve, the strategy graduates: the curve closes, a Uniswap v4 pool opens at the exact price the curve closed at, with all of the curve's ETH, and about 8.16% of the supply is burnt. The pool's liquidity goes to the dead address, so nobody can pull it: not Sweep, not the launcher.
Most launches never reach 4.2 ETH. They stay on their curve, tradable, and never start sweeping. The curve covers this phase in full.
The launch fee¶
Paid once, by whoever launches. The launch form shows it before you sign.
Fees on the curve¶
3% on every buy and every sell, taken from the ETH side:
For the first five seconds after a launch, buys also pay a snipe tax. In the launch's first second, the tax and the fees together take 99% of a buy; one second later it is about 25%, and by the fifth second it is zero. It is there to make a bot's buy in the first seconds a losing trade, and it goes to Sweep. The wallet that launched the strategy and its royalty recipient are exempt. See The snipe tax.
Nothing from the curve reaches a treasury: a strategy has none until it graduates.
Fees in the pool¶
10% on every buy and every sell, from the pool's first trade to its last. The first trade in the pool pays what the thousandth pays.
Those are points of every trade. On a 1 ETH trade, 0.08 ETH reaches the treasury, 0.01 ETH the royalty and 0.01 ETH Sweep.
The royalty¶
The same wallet receives the royalty in both phases: 2% of every trade on the curve, 1% of every trade in the pool. It is fixed at launch.
On an NFT strategy the royalty goes to whoever launched it, and nothing can move it afterwards — not Sweep, and not the collection's owner. On a token strategy it goes to the token's owner when the token names one. A royalty with nowhere to go, because the contract names no owner, goes to Sweep. On a reflexive strategy the royalty belongs to the launcher, for good.
Why the fee holds¶
2 things, and neither works alone.
The fee is part of the pool. A Uniswap v4 hook charges it, and a v4 pool is identified by the hook it names. Change the hook and you are naming a different pool, one that does not exist and holds nothing. There is nothing to vote on and nobody who could switch it off.
The token only trades on its curve, then its pool. A strategy token cannot be sent from one wallet to another, in either phase. Without that, anyone could move tokens out, open a second pool with no fee and trade for free.
That second rule has a real cost, and The token spells it out. What happens inside the pool on every trade is on The pool.