> For the complete documentation index, see [llms.txt](https://docs.ax11.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ax11.org/ax11-tokenomics/ax11-emission-and-fees-distribution.md).

# Ax11 Emission & Fees Distribution

Ax11 follows a structured emission model designed to incentivize traders, liquidity providers, and governance participants. The emission strategy ensures balanced rewards and sustainable protocol growth while maintaining the value of Ax11 tokens.

<figure><img src="/files/ID6Joynhz0prGOg03R76" alt=""><figcaption><p>Ax11 Token Emission</p></figcaption></figure>

### Emission Breakdown

Ax11 token emissions are distributed as follows:

#### **1. Trader Emissions** (2/3 of Total Emissions)

* Traders receive **2/3 of the total Ax11 emissions**.
* This incentivizes active participation in trading, ensuring deep liquidity and market efficiency.

#### **2. Liquidity Provider (LP) Emissions** (1/3 of Total Emissions)

* LPs receive **1/3 of the total emissions**, split evenly between X and Y pools.
* Allocation: **50% X Pool and 50% Y Pool**.
* LPs cannot select emission distribution between X and Y; it is auto-split to maintain market balance.

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### Trading Fee Distribution

<figure><img src="/files/IID2S1WWHjhhxtAcKDYe" alt=""><figcaption><p>Ax11 Fees Allocation</p></figcaption></figure>

Ax11 Protocol revenue is distributed among key participants as follows:

* **Initiator:** **1% of trading fees** (lifetime).
* **LPs:** **50% of trading fees**, divided equally:
  * **50% long, 50% short** within each X and Y pool.
* **Voters:** **30% of trading fees**.
* **Team:** **19% of trading fees**.
* **Exit & Switch Fee:** **0.1% Total Burn Fee (TBF)** on exit and side switches:
  * **50% to LP exit side.**
  * **40% buyback & burn Ax11.**
  * **10% to the protocol.**

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### Dutch Auction Market (Team Revenue)

* **7-day auction** system from **1% to 99.99%** discount (from Team’s 19% trading fee allocation).
* Ax11, ETH Sonic, and stablecoins are used.
* **Revenue split:**
  * **50% buyback and burn Ax11**.
  * **50% allocated to team revenue**.