> 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/start-here/how-ascend-works.md).

# How Ascend works

> **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 connects builders, traders, and HYPE stakers through token launches, trading, staking participation, and continued project support on Elysium. A project can begin with its initial market and build toward a stronger community, liquidity development, and additional markets. Each participant has a defined role in the platform's model.

## Creators and traders

A creator launches a token through Ascend's configured hook pools and selects a trading fee. The fee is divided into the creator allocation, coin support, and the protocol allocation according to the token's market-cap band. **At launch, the deployer configures how the creator allocation is used**, including direct recipient payments, holder rewards, token buybacks, or a combination. See [Launching on Ascend](/docs/launching-on-ascend.md) for the coin types and payout settings.

Pairing options include USDC, HYPE, KNTQ, real-world asset (RWA), stock, and other asset pairings. The supported pool configuration determines which options are available for a launch. See [Launching on Ascend](/docs/launching-on-ascend.md).

As a token reaches higher bands, the creator receives a larger share of the base fee and the protocol receives a smaller share. Any fee above the 1% base increases the creator allocation.

Before graduation, **10% of the token's creator-selected trading fee becomes available under its selected creator-fee configuration** as trades occur. The remaining creator allocation is held until the release conditions are met.

The available portion follows the selected payout configuration. It is not necessarily paid directly to the deployer's wallet, and holder distributions or buybacks may require separate processing.

See [Trading and creator fees](/docs/fees-and-revenue/trading-and-creator-fees.md) and [Creator fee release and takeovers](/docs/fees-and-revenue/creator-fee-release-and-takeovers.md).

## Traders and communities

Traders participate in new token markets and their communities. Ascend provides a published trading-fee schedule and profiles that track qualifying activity.

Trading volume and other eligible activity can earn points in the seasonal [Ascend Points Program](/docs/ascend-points.md), which requires an activated Ascend NFT for access. Accumulated points are used for KNTQ under each season's published rules. See [Trading profiles](/docs/trading-profiles-and-referrals.md).

## HYPE holders

Participants acquire **kHYPE, Kinetiq's liquid staking token, and deposit it into the Ascend user vault**. Kinetiq's system handles the underlying HYPE staking; the Ascend vault contract holds the deposited kHYPE and accounts for the participant's principal and attributable yield. Holding kHYPE outside the vault does not establish an Ascend vault position.

Yield attributable to eligible vault positions funds purchases of qualifying ecosystem tokens for the corresponding stakers. Withdrawing from the vault returns kHYPE. Converting that kHYPE into HYPE is a separate transaction through an available route, subject to its processing, liquidity, pricing, and network requirements. The vault has no fixed-duration staking lock, but redemption remains subject to its contract checks.

Eligible stakers can separately receive HYPE through the HYPE Points Program, funded by the designated HYPE purchase allocation from protocol fees. An NFT is not required for standard, unboosted HYPE Points Program rewards.

Ascend NFTs unlock two benefits when activated: **increased HYPE Points Program reward weight** on eligible staking positions and **eligibility for the seasonal Ascend Points Program**. Both require staking the NFT through Ascend and completing the **three-day activation period**. Holding an inactive NFT unlocks neither benefit. An activated NFT by itself does not generate HYPE rewards; an eligible staking position is also required.

The Ascend Points Program awards points for qualifying seasonal activity. An activated NFT grants access to earn those points; accumulated points are used for KNTQ under each season's rules. NFT activation alone awards neither points nor KNTQ, and the NFT's HYPE reward boosts do not automatically increase Ascend Points. See [Ascend NFTs: Yield Boosters](/docs/ascend-nfts.md) for the complete boost structure and activation requirements.

Each program has its own funding and allocation rules. Staking yield used to buy ecosystem tokens has already been converted into those tokens and is not also paid out as HYPE. NFT activation and withdrawal periods are separate from withdrawal of a kHYPE vault position and any subsequent conversion into HYPE.

See [HYPE staking and the HYPE Points Program](/docs/staking-and-rewards/hype-staking-and-rewards.md).

## Protocol revenue

Ascend allocates its protocol fees between the treasury and purchases of KNTQ and HYPE. Purchased HYPE funds the HYPE Points Program and protocol-owned staking. Purchased KNTQ supports burning and strategic ecosystem uses, including token buybacks, the Ascend Points Program, and protocol-owned liquidity.

The [revenue allocation reference](/docs/protocol-economics/protocol-revenue-allocation.md) defines each percentage and its denominator.

## Support through the builder lifecycle

Ascend is designed to work with teams beyond their token launch:

1. **Build and prepare:** Selected teams can pursue launch preparation, project positioning, community distribution, and liquidity-development support under the relevant builder program terms.
2. **Launch on Ascend:** Establish a token market in a supported pool, choose a trading fee, and begin building an active community.
3. **Qualify for Ascended status:** Projects meeting the market-cap, holder, trading-volume, and quality requirements gain additional homepage visibility and eligibility for ecosystem-token buyback support.
4. **Prepare for HyperCore spot:** Qualifying teams can receive support with token, liquidity, and deployment readiness for native spot markets.
5. **Prepare for HIP-3 perps:** Teams with a suitable foundation can explore the technical and market requirements for builder-deployed perpetual markets.

Qualifying projects may also be selected for the **Ascend Strategic Partner Program**, extending collaboration and ongoing project support beyond launch. These opportunities are conditional on program selection, funding, and venue requirements. A launch or Ascended designation does not guarantee another market listing or a particular amount of support.

Explore [Builder support](/docs/project-growth/builder-support.md), [Ascended status](/docs/project-growth/ascended-status.md), and [HyperCore and HIP-3](/docs/project-growth/hypercore-and-hip-3.md).

## How the assets relate

| Asset                   | Role in the Ascend model                                                                                                                                                                         |
| ----------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| USDC                    | A supported pairing asset                                                                                                                                                                        |
| HYPE                    | A supported pairing asset, user staking exposure, HYPE Points Program rewards, and protocol-owned staking                                                                                        |
| kHYPE                   | Kinetiq's liquid staking token, deposited into the Ascend vault for the user's staking position; vault withdrawals return kHYPE                                                                  |
| KNTQ                    | Kinetiq's token, adopted by Ascend as its protocol token; used for supported pairings, buybacks, burning, ecosystem deployment, liquidity, and the Ascend Points Program's seasonal points rules |
| RWAs and stock pairings | Additional pairing categories within supported pool configurations                                                                                                                               |
| Ecosystem tokens        | Tokens launched by projects and selected for qualified support or yield-funded distributions                                                                                                     |
| Ascend NFTs             | After activation, yield boosters for eligible HYPE Points Program staking positions and access credentials for the Ascend Points Program                                                         |

**Ascend has adopted KNTQ as its protocol token. There is no separate Ascend token.**