How it works
One of the key advantages of the GFM Protocol is that it doesn’t burn the LP tokens after launching the pool on the DEX. This unique approach allows the protocol to claim the earned fees from those LP tokens, ensuring that the benefits continue to flow back to the early supporters of the project.
Distribution of Earned Fees
Since the LP tokens were created using the funds contributed by presalers, they are the ones who receive the fee rewards. In other words, if you participated in the fundraising of the pool early on the GFM platform, you are eligible to receive a share of the fees generated by the pool’s trading activity. This system creates a powerful incentive for investors to get in early and contribute to the pool, helping it reach its fundraising goal and launch on the DEX.
For those who prefer to wait on the sidelines and invest only after the pool launches—while that’s perfectly fine—you’ll miss out on the opportunity to earn a share of the LP fees.
How the Fees Are Distributed
The distribution of the earned fees is straightforward:
10% Allocation to the $GFM Staking Network:
A portion of the earned LP fees—10%—is allocated to the $GFM Staking Network. This contribution supports the management of the pool and gives back to the network, fostering a sustainable ecosystem.
90% Proportional Distribution to Presalers:
The remaining 90% of the fees are distributed proportionally among the presalers. Essentially, the portion of the fees you receive corresponds to the relative size of your contribution to the pool’s total fundraising target.
For example, consider a pool with a target of 50 SOL:
Investor 1 contributed 5 SOL, which is 10% of the total target.
Investor 2 contributed 40 SOL, which is 80% of the total target.
When the fees are distributed:
Investor 1 will receive 10% of the 90% fee rewards.
Investor 2 will receive 90% of the 90% fee rewards.
This method ensures that your rewards are directly tied to your level of contribution, making it a fair and transparent process.
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