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

# Protocol Revenue

How Streamlock generates revenue, projected economics at scale, and how value flows to $LOCK holders.

***

## Revenue Sources

Streamlock has four live revenue streams today, plus three more documented as planned. Every fee is programmatic — collected by smart contracts with no manual intervention.

| Source                | Status        | Fee Range  | Collected From                      | Mechanism                                                                       |
| --------------------- | ------------- | ---------- | ----------------------------------- | ------------------------------------------------------------------------------- |
| **Buy fees**          | ✅ Live        | 4–13%      | SOL input on every buy              | Flat 3% + epoch pressure; 40% holders / 10% creator / 30% LP / 20% protocol     |
| **Sell fees**         | ✅ Live        | 1–50%      | SOL output on every sell            | Time-decay over unlock window; same four-way split as buy fees                  |
| **Settlement fee**    | ✅ Live        | 1% flat    | Stream owner's entitlement BPS      | Flat protocol fee at settlement; same for all users                             |
| **LST yield**         | ✅ Live        | \~6.5% APY | Idle SOL reserves staked as JitoSOL | Passive yield on pool reserves; zero cost to users                              |
| **Gaming rake**       | ⏳ Coming soon | 2%         | Player stakes in zero-sum games     | Flat rake on every resolved game; not yet implemented on-chain                  |
| **Dispute fee**       | ⏳ Coming soon | 0.1 SOL    | Disputer escrow                     | Refunded if dispute is valid; not yet implemented on-chain                      |
| **$LOCK launch burn** | ⏳ Gated       | 1M $LOCK   | Creator at launch time              | Deflationary supply reduction; designed but waiting on $LOCK utility activation |

> Streamflow's 0.19% stream-creation fee (charged only on Streamflow-backed pools) goes to Streamflow, **not** to Streamlock. New pools default to the [Locksmith](/streamlock-docs/core-concepts/locksmith.md) native escrow, which has no such fee. Either way, this fee is excluded from Streamlock protocol revenue.

See [Fee Structure](/streamlock-docs/fees-and-economics/fee-structure.md) for full rate tables and who pays what.

***

## Revenue Model

Protocol revenue is a function of **volume** and **effective fee rate**. The protocol retains **20%** of trading fees after the four-way split (40% holders / 10% creator / 30% LP providers / 20% protocol):

```
Protocol Trading Revenue = Trading Volume × Effective Fee Rate × 20%
```

> **Note:** Before LP Provision launched, the protocol retained 50%. The new 30% LP cut is carved out of the protocol's portion — holder rewards (40%) and creator share (10%) are unchanged.

### Effective Fee Rates

Because fees are dynamic, the effective rate depends on user behavior. The table below estimates blended rates based on expected distribution of activity:

| Fee Type               | Low Estimate | Mid Estimate | High Estimate | Assumption                                                             |
| ---------------------- | ------------ | ------------ | ------------- | ---------------------------------------------------------------------- |
| Buy fee (blended)      | 4%           | 5%           | 7%            | Flat 3% base + 1–4% epoch pressure (varies by trading activity)        |
| Sell fee (blended)     | 5%           | 12%          | 18%           | Impatient sellers skew early-window; patient sellers pull average down |
| **Weighted trade fee** | **3.5%**     | **8%**       | **14%**       | Assumes \~55% buy volume / \~45% sell volume                           |

Gaming rake *(coming soon)* adds a flat 2% on top, but is modeled separately since gaming volume may differ from trading volume.

***

## LST Yield — Passive Revenue from Idle Reserves

Streamlock stakes a portion of each pool's idle SOL reserves into **JitoSOL** (a liquid staking token on Solana), earning staking rewards + MEV tips. This generates passive protocol revenue with **zero impact on users** — no new fees, no price changes, no UX difference.

### How It Works

1. Typically **70%** of a pool's SOL reserves are staked into JitoSOL (configurable per-pool, up to 90% max)
2. A minimum of **0.01 SOL** always stays liquid to cover trades and settlements
3. AMM pricing uses **virtual reserves** (`liquid SOL + staked SOL`) so the price is identical whether reserves are staked or not
4. Automated cranks handle staking and unstaking — no manual intervention required
5. When SOL is unstaked, **100% of yield** flows to the protocol's `fee_recipient`

### Yield Economics

| Parameter              | Value                                                             |
| ---------------------- | ----------------------------------------------------------------- |
| LST used               | JitoSOL (Jito MEV-sharing + staking rewards)                      |
| Expected APY           | 5.9–7.5% (\~6.5% midpoint)                                        |
| Max stake ratio        | Typically 70% of pool reserves (configurable per-pool, up to 90%) |
| JitoSOL withdrawal fee | 0.1% (paid from yield, not user funds)                            |
| New user fees          | **None**                                                          |
| Price impact           | **None** (virtual reserves)                                       |

### Yield Projections by TVL

Assuming 70% staked at 6.5% APY, net of the 0.1% JitoSOL withdrawal fee:

| Total Pool Reserves (TVL) | Staked (70%) | Gross Yield (annual) | Withdrawal Fee | **Net Yield (annual)** |
| ------------------------- | ------------ | -------------------- | -------------- | ---------------------- |
| 100 SOL                   | 70 SOL       | 4.55 SOL             | 0.07 SOL       | **4.48 SOL**           |
| 1,000 SOL                 | 700 SOL      | 45.5 SOL             | 0.7 SOL        | **44.8 SOL**           |
| 10,000 SOL                | 7,000 SOL    | 455 SOL              | 7 SOL          | **448 SOL**            |
| 100,000 SOL               | 70,000 SOL   | 4,550 SOL            | 70 SOL         | **4,480 SOL**          |

### Why This Matters

* **Pure margin** — Yield is earned on capital that would otherwise sit idle in pool vaults
* **Scales with TVL** — More pools and more reserves = more yield, independent of trading volume
* **Complements trading fees** — Revenue diversification: trading fees are volume-driven, LST yield is TVL-driven
* **No user tradeoffs** — Pricing, liquidity, and UX are identical; users don't even know SOL is staked

### Safety Mechanisms

| Mechanism                        | Purpose                                                                             |
| -------------------------------- | ----------------------------------------------------------------------------------- |
| Minimum liquid reserves enforced | Configurable max stake ratio per pool; on-chain floor of 0.01 SOL always maintained |
| Automatic unstake triggers       | Unstakes before freeze/unlock windows or when price nears target                    |
| Fresh-GRIND cooldown             | Skips staking in the first 24h of a new milestone to avoid losses on short cycles   |
| Liquidity check on settlement    | On-chain guard rejects sells if liquid SOL is insufficient                          |
| Admin kill switch                | `staking_enabled` flag can disable staking per pool instantly                       |

***

## Scenario Projections

Three scenarios based on daily trading volume. All figures in SOL; USD equivalent depends on SOL price.

> **Note on revenue figures below:** Trading-fee numbers show the **gross fees** generated by all trading activity. The four-way split (40% holders / 10% creator / 30% LP / 20% protocol) determines how those gross fees are distributed. Protocol's actual revenue is the 20% line below each scenario.

### Conservative — Early Traction

| Metric                                   | Daily        | Monthly (30d) | Annually      |
| ---------------------------------------- | ------------ | ------------- | ------------- |
| Trading volume                           | 500 SOL      | 15,000 SOL    | 180,000 SOL   |
| Effective fee rate                       | 3.5%         | 3.5%          | 3.5%          |
| **Gross trading fees**                   | **17.5 SOL** | **525 SOL**   | **6,300 SOL** |
| → Holders (40%)                          | 7.0 SOL      | 210 SOL       | 2,520 SOL     |
| → Creators (10%)                         | 1.75 SOL     | 52.5 SOL      | 630 SOL       |
| → LP providers (30%)                     | 5.25 SOL     | 157.5 SOL     | 1,890 SOL     |
| → **Protocol (20%)**                     | **3.5 SOL**  | **105 SOL**   | **1,260 SOL** |
| Gaming rake (2%, all to protocol)        | 1 SOL        | 30 SOL        | 360 SOL       |
| Pool reserves (TVL)                      | —            | 500 SOL       | —             |
| LST yield (6.5% on 70%, all to protocol) | 0.06 SOL     | 1.9 SOL       | 22.8 SOL      |
| **Total protocol revenue**               | **4.6 SOL**  | **137 SOL**   | **1,643 SOL** |

### Base — Product-Market Fit

| Metric                                   | Daily       | Monthly (30d)  | Annually        |
| ---------------------------------------- | ----------- | -------------- | --------------- |
| Trading volume                           | 5,000 SOL   | 150,000 SOL    | 1,800,000 SOL   |
| Effective fee rate                       | 8%          | 8%             | 8%              |
| **Gross trading fees**                   | **400 SOL** | **12,000 SOL** | **144,000 SOL** |
| → Holders (40%)                          | 160 SOL     | 4,800 SOL      | 57,600 SOL      |
| → Creators (10%)                         | 40 SOL      | 1,200 SOL      | 14,400 SOL      |
| → LP providers (30%)                     | 120 SOL     | 3,600 SOL      | 43,200 SOL      |
| → **Protocol (20%)**                     | **80 SOL**  | **2,400 SOL**  | **28,800 SOL**  |
| Gaming rake (2%, all to protocol)        | 20 SOL      | 600 SOL        | 7,200 SOL       |
| Pool reserves (TVL)                      | —           | 10,000 SOL     | —               |
| LST yield (6.5% on 70%, all to protocol) | 1.25 SOL    | 37.3 SOL       | 448 SOL         |
| **Total protocol revenue**               | **101 SOL** | **3,037 SOL**  | **36,448 SOL**  |

### Bull — Category Leader

| Metric                                   | Daily         | Monthly (30d)   | Annually          |
| ---------------------------------------- | ------------- | --------------- | ----------------- |
| Trading volume                           | 50,000 SOL    | 1,500,000 SOL   | 18,000,000 SOL    |
| Effective fee rate                       | 8%            | 8%              | 8%                |
| **Gross trading fees**                   | **4,000 SOL** | **120,000 SOL** | **1,440,000 SOL** |
| → Holders (40%)                          | 1,600 SOL     | 48,000 SOL      | 576,000 SOL       |
| → Creators (10%)                         | 400 SOL       | 12,000 SOL      | 144,000 SOL       |
| → LP providers (30%)                     | 1,200 SOL     | 36,000 SOL      | 432,000 SOL       |
| → **Protocol (20%)**                     | **800 SOL**   | **24,000 SOL**  | **288,000 SOL**   |
| Gaming rake (2%, all to protocol)        | 300 SOL       | 9,000 SOL       | 108,000 SOL       |
| Pool reserves (TVL)                      | —             | 100,000 SOL     | —                 |
| LST yield (6.5% on 70%, all to protocol) | 12.5 SOL      | 373 SOL         | 4,480 SOL         |
| **Total protocol revenue**               | **1,113 SOL** | **33,373 SOL**  | **400,480 SOL**   |

> *These are illustrative scenarios, not forecasts. Actual revenue depends on adoption, market conditions, staking APY fluctuations, and user behavior. LST yield assumes 6.5% APY on 70% of TVL, net of JitoSOL withdrawal fees.*

***

## Protocol Cost Structure

Streamlock's on-chain architecture keeps operating costs minimal:

| Cost                                                 | Estimate                                          | Notes                                                                       |
| ---------------------------------------------------- | ------------------------------------------------- | --------------------------------------------------------------------------- |
| RouterAuthority tx fees (settlement, stream updates) | < 1 SOL/day at base volume                        | \~0.000005–0.01 SOL per tx; protocol subsidizes these for UX                |
| LST stake/unstake crank tx fees                      | < 0.01 SOL/day                                    | Automated cranks; negligible Solana tx costs                                |
| JitoSOL withdrawal fee                               | 0.1% of unstaked amount                           | Paid from yield, not user funds; net-positive above \~6 day staking periods |
| Referral revenue share payouts                       | 40-50% of trading fee revenue from referred users | Customer acquisition cost; time-bounded (6 months per referral, 5 SOL cap)  |
| Referred user settlement fee waivers *(coming soon)* | Up to 3 fee-free settlements per referred user    | CAC — protocol absorbs the 1% fee                                           |
| RPC infrastructure                                   | Fixed monthly cost                                | Standard Solana RPC provider                                                |
| Frontend hosting                                     | Fixed monthly cost                                | Static site + API routes                                                    |

**Key insight:** Protocol costs are largely **fixed**, while revenue scales **linearly** with volume. This creates improving margins as adoption grows.

| Scenario     | Protocol Revenue (monthly) | Est. Protocol Costs (monthly) | Gross Margin |
| ------------ | -------------------------- | ----------------------------- | ------------ |
| Conservative | 137 SOL                    | \~30 SOL                      | \~78%        |
| Base         | 3,037 SOL                  | \~50 SOL                      | \~98%        |
| Bull         | 33,373 SOL                 | \~200 SOL                     | \~99%+       |

***

## Deflationary Pressure from Launches *(Planned — Not Yet Live)*

> **Status:** This mechanism is documented in the [tokenomics design](/streamlock-docs/tokenomics-and-utility/tokenomics-and-utility.md) but is **not yet enforced on-chain**. Today, anyone can launch a token without burning $LOCK. The 1M $LOCK burn requirement will be activated in a future protocol upgrade — see [Tokenomics & Utility](/streamlock-docs/tokenomics-and-utility/tokenomics-and-utility.md) for the design and timing caveats.

Once activated, every token launch will burn **1,000,000 $LOCK** permanently. This creates a separate value driver independent of trading fees:

| Launches / Month | $LOCK Burned / Month | Annual Burn | % of Total Supply (1B) |
| ---------------- | -------------------- | ----------- | ---------------------- |
| 5                | 5,000,000            | 60,000,000  | 6%                     |
| 20               | 20,000,000           | 240,000,000 | 24%                    |
| 50               | 50,000,000           | 600,000,000 | 60%                    |

At sustained launch activity, circulating supply will contract meaningfully over time once the burn requirement is active.

***

## Value Flow to $LOCK Holders

Protocol revenue connects to $LOCK holders through the **revenue share** mechanism (see [Tokenomics & Utility](/streamlock-docs/tokenomics-and-utility/tokenomics-and-utility.md)):

```
Trading Fees ──→ 40% Holder Rewards    ──→ SOL to token holders (Merkle claim)         [live]
            ├──→ 10% Creator Share     ──→ SOL to token creator                         [live]
            ├──→ 30% LP Providers      ──→ SOL to permanent LP injectors                [live, see LP Provision]
            └──→ 20% Protocol Treasury ──→ Revenue Share ──→ $LOCK Holders (≥1M $LOCK)  [coming soon]

LST Yield ──────→ Protocol Treasury    ──→ Revenue Share ──→ $LOCK Holders              [coming soon]

Token Launches ──→ $LOCK Burn          ──→ Reduced Supply ──→ Scarcity Pressure        [planned, not yet live]
```

**Value-accrual mechanisms:**

1. **Holder rewards** *(live)* — 40% of trading fees during unlock windows go directly to token holders as claimable SOL, incentivizing holding over selling
2. **Creator incentives** *(live)* — 10% of trading fees go to token creators, attracting quality launches
3. **LP providers** *(live)* — 30% of trading fees go to permanent LP injectors, deepening pool liquidity forever (see [LP Provision](/streamlock-docs/fees-and-economics/lp-provision.md))
4. **Passive yield** *(live)* — LST staking earns \~6.5% APY on idle reserves regardless of trading activity
5. **Direct income to $LOCK holders** *(coming soon)* — Revenue share will distribute a portion of the protocol treasury to qualifying $LOCK holders
6. **Supply reduction** *(planned, not yet live)* — Once activated, launch burns will permanently reduce circulating $LOCK

All mechanisms strengthen as platform adoption grows.

***

## Comparison to Peers

| Platform       | Primary Revenue                                    | Fee Range                     | Revenue Model                                        |
| -------------- | -------------------------------------------------- | ----------------------------- | ---------------------------------------------------- |
| pump.fun       | Trading fees                                       | 1% flat                       | Volume-driven, no lock mechanics                     |
| Jupiter        | Swap fees                                          | 0.1–0.5%                      | Aggregator routing fees                              |
| Raydium        | LP fees + protocol fee                             | 0.25%                         | AMM trading fees                                     |
| **Streamlock** | **Dynamic trading fees + gaming rake + LST yield** | **1–50% + \~6.5% APY on TVL** | **Behavioral fees + passive yield on idle reserves** |

Streamlock's effective fee rate is structurally higher than flat-fee platforms because fees are tied to behavior, not just volume. Believers pay low fees; flippers subsidize the protocol. Additionally, LST yield earns on idle reserves — a revenue stream most launchpads leave on the table.

***

## Key Takeaways for Investors

1. **Four live revenue streams** — Buy fees, sell fees, settlement fees, and LST yield. Three more (gaming rake, dispute fee, $LOCK launch burn) are designed and documented but not yet on-chain.
2. **Holder rewards** *(live)* — 40% of trading fees during unlock windows go directly to token holders as claimable SOL, creating a strong hold incentive
3. **Permanent LP rewards** *(live)* — 30% of trading fees go to LP providers who permanently deepen pool reserves, driving structural liquidity growth (see [LP Provision](/streamlock-docs/fees-and-economics/lp-provision.md))
4. **Two growth vectors** — Trading fees scale with volume; LST yield scales with TVL — independent drivers that compound
5. **High gross margins** — On-chain execution with minimal infrastructure costs (\~78–99%+)
6. **Passive yield on idle capital** *(live)* — \~6.5% APY on pool reserves via JitoSOL, with zero user impact
7. **Aligned fee mechanics** — Four-way split (40% holders / 10% creator / 30% LP / 20% protocol) aligns all stakeholders
8. **Deflationary tokenomics** *(planned)* — Once the $LOCK launch burn is activated, every launch will permanently reduce $LOCK supply
9. **Revenue share** *(coming soon)* — Direct value distribution to committed $LOCK holders is designed but not yet activated
10. **Low fixed costs** — Solana's low tx fees mean protocol costs stay negligible at scale

***

## Related

* [Fee Structure](/streamlock-docs/fees-and-economics/fee-structure.md) — Complete fee rates and who pays what
* [Referral & Rewards](/streamlock-docs/rewards/referral-and-rewards.md) — Referral program and points system
* [Tokenomics & Utility](/streamlock-docs/tokenomics-and-utility/tokenomics-and-utility.md) — $LOCK allocation, vesting, and revenue share
* [Launching a Token](/streamlock-docs/guides/launching-a-token.md) — Launch flow and costs