On Henjin.xyz, the protocol fees are split among various participants in a manner designed to incentivize and reward different contributors to the ecosystem. Here’s a breakdown of how these fees are allocated:

Trading Fees (AMM):

• Liquidity Providers (LPs): A portion of the trading fees (87%) generated by the Automated Market Maker (AMM) pools goes to the liquidity providers who supply the necessary liquidity for trading.

• HENJ Stakers: Another portion of the fees (7%) is allocated to HENJ token stakers, providing them with rewards for staking their tokens in the protocol.

• Operations: A small portion of the fees (4.5%) are reserved for the operational costs of maintaining and developing the Henjin platform.

• Algebra License: A small portion of the fees (1.5%) is dedicated to the Algebra licence, to the use of the underlying technology and algorithms used by the DEX.

Fair Launch Fees:

• Henjin Treasury: 5% of the total funds raised during fair launches are directed to the Henjin Treasury, supporting the overall financial health and sustainability of the protocol.

• Referral Fees: There is a 3% fee on any referred participation in fair launch events. This fee is earned by users who create referral links and successfully refer others to participate in fair launches.

This fee structure ensures a balanced distribution of earnings, rewarding both liquidity providers and token holders, while also supporting the platform’s operational needs and growth initiatives.