> 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/revenue-and-capital-allocation.md).

# Revenue and Capital Allocation

<figure><img src="https://808398842-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkBhQL4KtgFMdu4nj8Hn0%2Fuploads%2FTGJvNwuYPxRBJd33Hp6u%2Ftrading-fees.png?alt=media&amp;token=0b76b120-fd13-403b-bb37-b152db30732b" alt=""><figcaption></figcaption></figure>

## Protocol fees

After the applicable participant payments, Ascend allocates the remaining protocol revenue to HYPE and KNTQ purchases.

Ascend allocates **50% of net protocol revenue to HYPE purchases** and **50% to KNTQ purchases**.

The allocation model below uses the fixed 50% HYPE / 50% KNTQ split.

## HYPE allocation

| **Use**                      | **Share of purchased HYPE** | **Purpose**                                                                                                                                           |
| ---------------------------- | --------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Protocol-owned staking**   | 40%                         | Build a protocol-owned staked HYPE position whose yield funds ecosystem-token buybacks for burning                                                    |
| **Ecosystem-token buybacks** | 30%                         | Acquire qualifying Ascended tokens for treasury retention and HyperCore listing support, with a small portion burned; not for distribution to stakers |
| **Treasury and operations**  | 20%                         | Fund development, infrastructure, team operations, and other protocol expenses                                                                        |
| **Direct staker rewards**    | 10%                         | Distribute HYPE to eligible stakers                                                                                                                   |

These percentages apply only to the HYPE purchased through this allocation, not to total protocol revenue or gross trading fees.

All ecosystem tokens purchased using yield from the 40% protocol-owned staking allocation are burned. The protocol-owned HYPE remains staked.

Ecosystem tokens purchased through the 30% ecosystem-buyback allocation are retained in Ascend’s treasury, with a small portion burned. Treasury-held tokens from this allocation are used to help support eligible HyperCore listings. These tokens are not distributed to stakers. The exact proportion burned is not specified in this litepaper.

This ecosystem-token treasury inventory is separate from the 20% HYPE allocation for treasury and operations.

## KNTQ allocation

The remaining 50% of net protocol revenue is used to purchase KNTQ. Purchased KNTQ is allocated three ways.

| Use                   | Share of purchased KNTQ | Purpose                                                                                                   |
| --------------------- | ----------------------- | --------------------------------------------------------------------------------------------------------- |
| Burn                  | 60%                     | Permanently remove KNTQ from circulation through the Hyperliquid Assistance Fund.                         |
| KNTQ/kHYPE liquidity  | 20%                     | Pair KNTQ with kHYPE as protocol-owned liquidity to deepen the KNTQ market.                               |
| Ascend points program | 20%                     | Distribute liquid KNTQ to users in seasons, based on cumulative activity on their Ascend trading profile. |

These percentages apply only to the KNTQ purchased through this allocation, not to total protocol revenue or gross trading fees.

Burns are executed by sending KNTQ to the Hyperliquid Assistance Fund, 0xfefefefefefefefefefefefefefefefefefefefe, on HyperCore or HyperEVM.

The points program tracks each user's staked TVL, trading volume, ecosystem tokens held, and general platform usage across a season, and airdrops KNTQ according to that activity at the end of the season. Season length, weighting, and eligibility are published before each season opens. See Trading Profiles and Referrals.

The KNTQ burn is separate from the ecosystem-token burns funded by protocol-owned staking yield and the 30% ecosystem-buyback allocation.

## A simple accounting example

For every $100 collected through a token’s trading fees, $25-$50 is paid to the applicable recipient, leaving $50-$75 in net protocol revenue.

The examples below show both ends of that range, using the fixed 50% HYPE / 50% KNTQ split, with the purchased HYPE allocated according to the 40/30/20/10 model and the purchased KNTQ according to the 60/20/20 model.

| **Final destination**                  | **25% recipient share** | **50% recipient share** |
| -------------------------------------- | ----------------------: | ----------------------: |
| Creator, operator, or deployer payment |                  $25.00 |                  $50.00 |
| Protocol-owned HYPE staking            |                  $15.00 |                  $10.00 |
| Fee-funded ecosystem-token purchases   |                  $11.25 |                   $7.50 |
| Treasury and operations                |                   $7.50 |                   $5.00 |
| Direct HYPE rewards to stakers         |                   $3.75 |                   $2.50 |
| KNTQ burn                              |                  $22.50 |                  $15.00 |
| KNTQ/kHYPE liquidity                   |                   $7.50 |                   $5.00 |
| Ascend points program (KNTQ)           |                   $7.50 |                   $5.00 |
| **Total**                              |             **$100.00** |             **$100.00** |

{% hint style="info" %}
Treasury-held ecosystem tokens used to help support eligible HyperCore listings are included within the 30% ecosystem-buyback allocation. The allocation above does not include an additional listing reserve. The final framework will specify any additional funding for USDC liquidity or deployment costs.
{% endhint %}

These amounts are illustrative and exclude execution costs and separate swap fees. The fee-funded ecosystem-token purchases shown above are retained in treasury, with a small portion burned and treasury-held tokens used to help support eligible HyperCore listings, not staker airdrops.

Purchased HYPE is not necessarily removed from circulation. Some is retained and staked by the protocol, while other portions are distributed to stakers or used for ecosystem token purchases and operations. The burn from protocol-owned staking applies to ecosystem tokens purchased using the position’s yield, not to the staked HYPE itself. A small portion of the ecosystem tokens purchased through the separate 30% allocation is also burned. Purchased KNTQ allocated to the burn is removed from circulation through the Hyperliquid Assistance Fund.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://ascendlaunch.gitbook.io/docs/revenue-and-capital-allocation.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.