> For the complete documentation index, see [llms.txt](https://ascendlaunch.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascendlaunch.gitbook.io/docs/protocol-economics/protocol-revenue-allocation.md).

# Protocol revenue allocation

> **Live on Elysium mainnet:** launches and trading on USDC, HYPE and KNTQ pairs, creator fees, coin support, and Holder Rewards and Buyback coins. Protocol fees are split on chain, and each leg holds the asset it was paid in. Staking, the HYPE Points Program, Ascend NFTs, the Ascend Points Program and ecosystem-token buybacks are not live yet.

Ascend allocates **10% of protocol fees to its treasury** and **90% to KNTQ and HYPE purchases**. Within the purchase allocation, **80% goes to KNTQ** and **20% goes to HYPE**.

Protocol fees are the protocol component of the [trading fee schedule](/docs/fees-and-revenue/trading-and-creator-fees.md). Creator fees and coin support allocations are separate components and are not included in the percentages on this page.

## Sequencer-fee funding for builders

Alongside its trading-fee allocations, **Ascend commits revenue from its share of Elysium sequencer fees to builder support**, including grants, HyperCore spot-listing preparation, and resources for projects launching and growing on Ascend.

Sequencer-fee revenue is a separate funding stream. The percentages, flowchart, and examples below describe the allocation of Ascend's protocol trading fees and do not include sequencer-fee revenue.

See [Builder support](/docs/project-growth/builder-support.md) for how this funding supports projects throughout their lifecycle.

## Fee flow

Each percentage below applies to the allocation immediately above it.

```mermaid
flowchart TD
    P["Protocol fees"] -->|10%| T["Treasury"]
    P -->|90%| B["Buybacks"]
    B -->|80%| K["KNTQ purchases"]
    B -->|20%| H["HYPE purchases"]
    K -->|40%| KB["KNTQ burn"]
    K -->|60%| KE["Strategic ecosystem allocation"]
    H -->|50%| HR["HYPE Points Program"]
    H -->|50%| HS["Protocol-owned staked HYPE"]
```

## Treasury and token purchases

| Allocation              | Share of protocol fees |
| ----------------------- | ---------------------: |
| Treasury                |                    10% |
| KNTQ and HYPE purchases |                    90% |
| **Total**               |               **100%** |

The purchase allocation then divides as follows:

| Token | Share of the purchase allocation | Equivalent share of protocol fees |
| ----- | -------------------------------: | --------------------------------: |
| KNTQ  |                              80% |                               72% |
| HYPE  |                              20% |                               18% |

The denominator matters: **80% of the purchase allocation equals 72% of protocol fees** because 10% of protocol fees is allocated to the treasury first.

## KNTQ allocation

Of the KNTQ purchased:

| Use                            | Share of KNTQ purchased |
| ------------------------------ | ----------------------: |
| Burned                         |                     40% |
| Strategic ecosystem allocation |                     60% |

The strategic allocation supports three uses:

* Ecosystem-token buybacks.
* The Ascend Points Program.
* Protocol-owned KNTQ liquidity across Ascend token pools and kHYPE.

These uses share the 60% allocation. The model does not prescribe a fixed percentage for each individual use. The allocation can therefore support different ecosystem needs without implying equal funding across all three categories.

For more on these uses, see [KNTQ and ecosystem support](/docs/protocol-economics/kntq-and-ecosystem-support.md).

## HYPE allocation

Of the HYPE purchased:

| Use                                  | Share of HYPE purchased |
| ------------------------------------ | ----------------------: |
| HYPE Points Program                  |                     50% |
| Protocol-owned staked HYPE on Ascend |                     50% |

The HYPE Points Program allocation funds HYPE distributions to eligible staking positions under the rules described in [HYPE staking and the HYPE Points Program](/docs/staking-and-rewards/hype-staking-and-rewards.md). The other half becomes [protocol-owned staked HYPE](/docs/protocol-economics/protocol-owned-hype.md).

Each of these branches represents 9% of total protocol fees: 90% allocated to purchases, multiplied by 20% allocated to HYPE, multiplied by 50% allocated to the respective use.

## Every $1,000 in protocol fees

The following table expresses all final destinations using the same denominator. The allocations sum to 100% of protocol fees.

| Final destination                   | Share of protocol fees | Allocation from $1,000 |
| ----------------------------------- | ---------------------: | ---------------------: |
| Treasury                            |                    10% |                   $100 |
| KNTQ burn                           |                  28.8% |                   $288 |
| KNTQ strategic ecosystem allocation |                  43.2% |                   $432 |
| HYPE Points Program                 |                     9% |                    $90 |
| Protocol-owned staked HYPE          |                     9% |                    $90 |
| **Total**                           |               **100%** |             **$1,000** |

The dollar figures describe allocation values. They do not specify the number of tokens acquired or distributed; those quantities depend on execution prices.

## Example: from a trade to the final allocation

Assume a token generates **$100,000 of trading volume at a 3% trading fee**, while remaining in the **$40k–$1M market-cap band** throughout that volume.

The total trading fee is $3,000:

| Initial destination | Percentage of traded amount |     Amount |
| ------------------- | --------------------------: | ---------: |
| Creator             |                       2.50% |     $2,500 |
| Coin support        |                       0.05% |        $50 |
| Protocol            |                       0.45% |       $450 |
| **Total**           |                   **3.00%** | **$3,000** |

The protocol revenue model applies to **the $450 protocol allocation**:

| Final destination                   |      Amount |
| ----------------------------------- | ----------: |
| Treasury                            |      $45.00 |
| KNTQ burn                           |     $129.60 |
| KNTQ strategic ecosystem allocation |     $194.40 |
| HYPE Points Program                 |      $40.50 |
| Protocol-owned staked HYPE          |      $40.50 |
| **Total protocol allocation**       | **$450.00** |

In this example, $405 is allocated to token purchases: $324 to KNTQ and $81 to HYPE. The KNTQ and HYPE allocations are then divided into the final destinations shown above. The creator's $2,500 and the $50 coin support allocation remain outside this protocol revenue calculation.

These examples illustrate the allocation model before execution costs, price movements, and rounding. They do not state a purchase schedule or a guaranteed staking yield.