Fee Structure
PNP charges a 1% fee on all trading volume across every market. This fee is split across the ecosystem to reward creators, fund settlement, and incentivize growth.Fee Distribution
| Recipient | Share | Purpose |
|---|---|---|
| Market Creators | 30% | Direct reward for creating and curating valuable markets |
| PNP DAO | 20% | Compensates DAO members for settlement responsibility when the oracle can’t resolve a market |
| Protocol & Trading Incentives | 50% | Funds protocol development, infrastructure, and trading incentive programs |
How It Works
- 1% fee is deducted on every buy and sell across all PNP markets
- Creators earn 30% of fees from their markets — the more volume your market generates, the more you earn
- 20% goes to the PNP DAO — the DAO takes on the responsibility of settling markets that fall outside the oracle’s scope. This allocation compensates members for that duty.
- The remaining 50% funds protocol operations and trading incentives that drive platform growth
Why This Structure
- Creators are rewarded for building markets that attract volume — aligning incentives between creators and the platform
- Settlement is funded — the DAO has a sustainable revenue stream to maintain high-quality, reliable settlement as the backstop to the LLM oracle
- Growth is sustainable — protocol and incentive funding ensures long-term development and user acquisition without relying on external fundraising