Skip to main content

Fee Distribution System

The protocol generates revenue by taking a configurable share of staking rewards. This fee is managed and distributed through a dedicated mechanism to ensure transparency and fairness.

Fee Generation​

  • Fees are derived only from newly generated staking rewards — never from users' original deposits.
  • A configurable fee percentage is applied to each reward event:
    • Default: 10%
    • Maximum: 20%
  • Fees are calculated and recorded whenever the exchange rate is updated during protocol operations.

Fee Accounting​

  • All accumulated fees are tracked separately in the contract state.
  • During exchange rate computation, accumulated fees are subtracted from the total MAT balance to ensure the rate reflects only user rewards.
  • This ensures the exchange rate accurately reflects user rewards and is not inflated by protocol fees.

Fee Collection and Distribution​

  • The protocol owner can withdraw accumulated fees to a designated FeeDistributionVault.
  • The FeeDistributionVault holds a predefined list of beneficiaries with associated weightings.
  • When distribution is triggered, each beneficiary receives a share of the fees based on their assigned weight.