Fee Distribution Model (Minting Fees — 40/40/20 Split)

DUO Protocol Fee Structure

DUO Protocol applies a single, transparent fee model: a transaction fee on both minting and redeeming restaked tokens (DRST). No performance fees are taken on staking or restaking yields. Base staking rewards remain entirely with token holders.

Fee Collection

• Trigger Events: Fees apply on mint (creation of DRST) and redeem (conversion of DRST back to the base asset).

• Form: Collected in DRST at the point of transaction.

• Conversion: DRST-denominated fees can be instantly converted into any supported token, without impacting liquidity.

Long-Term Fee Allocation

The fee allocation aims to strengthen the 0Fx ecosystem for long-term sustainability:

• 40% — 0Fx Protocol

  • Allocated to 0FX tokens, the ecosystem's central asset.

  • Concentrates value in 0FX to ensure ecosystem-wide market correlation and structural support.

• 40% — Restaked Tokens (DRST)

  • Returned to the specific DRST token involved in the transaction.

  • Isolated per DRST market, encouraging sustained adoption and volume.

• 20% — DUO Token

  • Allocated to the DUO governance and utility token.

  • Benefits from aggregate activity across all pools, complementing the 40% for 0FX.

  Rationale for the 40/40/20 Split

  This allocation model ensures:

  • Ecosystem Resilience: Direct value accrual to 0FX.

  • Incentives for DRST Markets: Activity-based rewards boost competition and usage.

  • Ecosystem-Wide Upside: DUO holders benefit from governance rewards linked to protocol adoption.