Fee Model

Monolythium implements a multi-layered fee model spanning gas fees, protocol fees, and application-specific fees. All protocol revenue flows through on-chain contracts with transparent, auditable splits between burning and treasury accumulation.

Overview

Fee Type	Source	Destination
Gas Fees	Every transaction	FeeCollector (50% burn / 50% treasury)
MonoPump Fees	Token buys and sells	FeeCollector
Bridge Fees	mUSDC deposits	Contracts Treasury
Pro Access	Subscription payments	Contracts Treasury
DEX Swap Fees	AMM swaps	Liquidity providers
Referral Rewards	Referred activity	Referring user

Key Addresses

Role	Address
FeeCollector Contract	Deployed on-chain (collects and splits)
Contracts Treasury	`0x70773914287A8D92F732296bFa8866217aF13BeD`

Fee Flow Diagram

User Tx ──────────────> Gas Fee ──────────> FeeCollector ──> 50% Burn
                                                         └──> 50% Treasury

MonoPump Buy ─────────> 2% Platform Fee ──> FeeCollector ──> 50% Burn
                                                          └──> 50% Treasury

MonoPump Sell ────────> Sell Decay Tax ────> FeeCollector ──> 50% Burn
(early exit)                                              └──> 50% Treasury

Bridge Deposit ───────> 0.1% Fee ─────────> Contracts Treasury

Pro Access ───────────> Subscription ─────> Contracts Treasury

DEX Swap ─────────────> Swap Fee ─────────> Liquidity Providers

Gas Fees

Every transaction on Monolythium pays a gas fee, whether submitted via the EVM JSON-RPC or Cosmos SDK interface.

Fee Calculation

Fee = Gas Used x Gas Price

Component	Description
Gas Limit	Maximum gas the sender is willing to consume
Gas Used	Actual gas consumed during execution
Gas Price	Price per unit of gas, denominated in `alyth`
Minimum Gas Price	`0.025 alyth` per gas unit

Unit Conversions

LYTH = 10^18 alyth (Cosmos)
LYTH = 10^18 Wei   (EVM)
Gwei = 10^9 Wei

FeeCollector Split

All gas fees flow into the FeeCollector contract, which enforces a fixed split:

Destination	Percentage	Effect
Burn	50%	Permanently removed from supply (deflationary)
Contracts Treasury	50%	Protocol revenue for development and operations

// FeeCollector.sol — simplified logic
function distribute() external {
    uint256 balance = address(this).balance;
    uint256 burnAmount = balance / 2;         // 50%
    uint256 treasuryAmount = balance - burnAmount; // 50%

    // Burn by sending to dead address
    payable(BURN_ADDRESS).transfer(burnAmount);

    // Treasury receives remainder
    payable(TREASURY).transfer(treasuryAmount);
}

Fee Estimation

Cosmos CLI:

# Dry run to estimate gas
monod tx bank send <from> <to> 100000000000000000000alyth \
  --gas=auto \
  --dry-run

# Execute with buffer
monod tx bank send <from> <to> 100000000000000000000alyth \
  --gas=auto \
  --gas-adjustment=1.3 \
  --gas-prices=0.025alyth

EVM (JavaScript):

const gasEstimate = await provider.estimateGas({
  to: recipient,
  value: ethers.parseEther("100"),
});

// Add 20% buffer
const gasLimit = gasEstimate * 120n / 100n;

Fee Scenarios

Operation	Gas Used	Gas Price	Fee	Burned (50%)	Treasury (50%)
Native transfer	~65,000	0.025 alyth	0.000001625 LYTH	0.0000008125 LYTH	0.0000008125 LYTH
ERC-20 transfer	~50,000	0.025 alyth	0.00000125 LYTH	0.000000625 LYTH	0.000000625 LYTH
Contract deploy	~1,500,000	0.025 alyth	0.0000375 LYTH	0.00001875 LYTH	0.00001875 LYTH
DEX swap	~200,000	0.025 alyth	0.000005 LYTH	0.0000025 LYTH	0.0000025 LYTH

MonoPump Fees

MonoPump is the fair-launch token platform on Monolythium. It applies fees at multiple stages to protect against manipulation and fund protocol development.

Buy Fee

A 2% platform fee is charged on every token purchase:

Buy 100 LYTH worth of tokens
├── 98 LYTH  → Used to purchase tokens on bonding curve
└──  2 LYTH  → FeeCollector (50% burn / 50% treasury)

Sell Decay Tax

An initial 20% sell tax is applied to early sellers. This tax decays linearly over 7 days to discourage pump-and-dump behavior:

Time Since Purchase	Sell Tax
0 days	20.0%
1 day	17.1%
2 days	14.3%
3 days	11.4%
4 days	8.6%
5 days	5.7%
6 days	2.9%
7+ days	0.0%

// Sell tax calculation (simplified)
function getSellTax(uint256 purchaseTime) public view returns (uint256) {
    uint256 elapsed = block.timestamp - purchaseTime;
    if (elapsed >= 7 days) return 0;
    return INITIAL_TAX * (7 days - elapsed) / 7 days; // 20% -> 0%
}

Sell tax proceeds are sent to the FeeCollector for the standard 50/50 burn/treasury split.

Graduation Fee

When a MonoPump token reaches its bonding curve cap and "graduates" to the full DEX, a 1.5% graduation fee is charged on the liquidity being migrated:

Bonding curve cap reached
├── 98.5% of liquidity → DEX pool (locked)
└──  1.5% graduation fee → FeeCollector

info

The graduation fee is a one-time event per token. After graduation, the token trades on the DEX with standard swap fees only.

mUSDC Bridge Fees

The mUSDC Bridge allows users to deposit USDC and receive mUSDC (an ERC-20 wrapper) for use in Monolythium DeFi.

Operation	Fee	Destination
Deposit (USDC to mUSDC)	0.1%	Contracts Treasury
Redemption (mUSDC to USDC)	0%	No fee

Deposit 1,000 USDC
├── 999 USDC → Backing reserve
├──   1 USDC → Contracts Treasury (0.1%)
└── 999 mUSDC minted to user

tip

Redemptions are fee-free to encourage liquidity and maintain the mUSDC peg.

ProAccessRouter

The ProAccessRouter contract manages subscription-based access to premium platform features. All subscription revenue flows directly to the Contracts Treasury.

Property	Value
Contract	ProAccessRouter
Revenue Destination	`0x70773914287A8D92F732296bFa8866217aF13BeD`
Payment Token	LYTH

Pro Subscription Payment
└── 100% → Contracts Treasury

Pro access unlocks features such as:

Advanced analytics dashboards
Priority transaction submission
Extended API rate limits
Premium portfolio tools

DEX Swap Fees

MonoSwap DEX uses a standard automated market maker (AMM) fee structure. Swap fees are retained in the liquidity pool and accrue to liquidity providers proportional to their share.

Fee Component	Rate
Swap fee	Standard AMM rate
Protocol fee	Portion to FeeCollector

User swaps 10 LYTH for TokenX
├── Swap fee deducted from input
│   ├── LP share → Remains in pool (accrues to LPs)
│   └── Protocol share → FeeCollector (50% burn / 50% treasury)
└── Remaining LYTH swapped for TokenX at pool ratio

LP Farming Rewards

Liquidity providers earn rewards from two sources:

Swap Fees -- A share of every swap fee is retained in the pool, increasing the value of LP tokens.
Farming Rewards -- Additional LYTH rewards distributed to staked LP tokens via the farming contracts.

Referral Rewards

Users who refer others to the platform earn a 5% referral bonus on fees generated by their referrals.

Property	Value
Referral Rate	5% of referred user's fees
Payout	Claimable LYTH
Tracking	On-chain referral mapping

Referred user pays 2 LYTH in fees
├── 0.10 LYTH → Referrer (5% of 2 LYTH)
└── 1.90 LYTH → Normal fee flow (FeeCollector)

Treasury Management

Contracts Treasury

Address: 0x70773914287A8D92F732296bFa8866217aF13BeD

The Contracts Treasury receives protocol income from:

50% of all gas fees (via FeeCollector)
50% of MonoPump fees (via FeeCollector)
100% of bridge deposit fees
100% of Pro Access subscription revenue
Protocol share of DEX swap fees

This treasury is separate from the community treasury and is dedicated to protocol development, operations, and ecosystem growth.

Burn Mechanics

Burned LYTH is permanently removed from the circulating supply. Burns occur through:

Source	Mechanism
FeeCollector (50%)	Sent to burn address on every distribution
Voluntary burns	Users can burn LYTH via `MsgBurn`
Validator creation	100,000 LYTH burned per new validator

# Query total burned
monod query bank balances mono1qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqnrql8a

# View burn in a specific transaction
monod query tx <txhash> | jq '.tx.auth_info.fee'

Fee Parameters

Genesis Configuration

{
  "fee_collector": {
    "burn_rate": "0.50",
    "treasury": "0x70773914287A8D92F732296bFa8866217aF13BeD"
  },
  "minimum_gas_prices": "0.025alyth"
}

Governance

The FeeCollector burn/treasury split (50/50) is enforced by the smart contract and requires a contract upgrade to modify.
Minimum gas price is configured per-validator in app.toml and is not a consensus parameter.
MonoPump fee rates are set in the MonoPump contract and can be updated by the contract owner.

Fee Grants

Cosmos SDK fee grants allow one account to pay transaction fees on behalf of another:

# Grant fee allowance
monod tx feegrant grant <granter> <grantee> \
  --spend-limit 1000000alyth \
  --expiration "2027-12-31T23:59:59Z"

# Use the grant
monod tx bank send <from> <to> <amount> \
  --fee-granter <granter>

Use cases:

Onboarding new users who do not yet hold LYTH
Application-sponsored transactions
Batched operations for DAOs or multisigs

Monitoring

Query FeeCollector Balance

# Check pending fees awaiting distribution
monod query bank balances <fee-collector-address>

Track Burns on Monoscan

All burn events are visible on the block explorer:

https://monoscan.xyz/address/0x000000000000000000000000000000000000dEaD

Treasury Balance

# Query contracts treasury balance
cast balance 0x70773914287A8D92F732296bFa8866217aF13BeD --rpc-url <rpc-url>

FAQ

Why 50/50 burn/treasury instead of 90/10?

The FeeCollector contract uses a 50/50 split between burning and the Contracts Treasury. This provides meaningful deflationary pressure while ensuring sustainable funding for protocol development. The base-layer Cosmos fee handler (which predates the FeeCollector) uses a 90% burn / 10% proposer split for any fees not routed through the FeeCollector.

What happens if I set gas too low?

The transaction fails with an "out of gas" error. You lose the gas consumed up to the point of failure. Always use --gas=auto with a --gas-adjustment buffer.

Are MonoPump fees negotiable?

No. Fee rates are enforced by the smart contract and apply uniformly to all users. The sell decay tax is time-based and cannot be bypassed.

Can I avoid the bridge deposit fee?

No. The 0.1% deposit fee is enforced by the bridge contract. However, redemptions (mUSDC back to USDC) are fee-free.

Where can I see fee revenue data?

Protocol fee data is available on-chain. The Contracts Treasury balance, FeeCollector distributions, and burn totals can all be queried via RPC or viewed on Monoscan.

Transaction Fees -- User guide
Burning -- Burn mechanics
Tokenomics -- Economic model
IBC Integration -- Cross-chain transfers

Overview​

Key Addresses​

Fee Flow Diagram​

Gas Fees​

Fee Calculation​

Unit Conversions​

FeeCollector Split​

Fee Estimation​

Fee Scenarios​

MonoPump Fees​

Buy Fee​

Sell Decay Tax​

Graduation Fee​

mUSDC Bridge Fees​

ProAccessRouter​

DEX Swap Fees​

LP Farming Rewards​

Referral Rewards​

Treasury Management​

Contracts Treasury​

Burn Mechanics​

Fee Parameters​

Genesis Configuration​

Governance​

Fee Grants​

Monitoring​

Query FeeCollector Balance​

Track Burns on Monoscan​

Treasury Balance​

FAQ​

Related​