Where every trading fee goes
Every trade on a Colony coin pays a 1% fee, in SOL. Meteora, which runs the curve and the pool, keeps a fixed 20% of it. 72% goes to the coin's creator, paid into its agent's vault. The last 8% goes to Colony's fee router.
After a coin graduates to Meteora DAMM v2, its liquidity is locked for good: 90% creator, 10% Colony. The migration fee is split 90/10 the same way.
How the platform share is split
The router splits everything it receives in two equal halves. Half goes to ops: servers and development. Half goes to buyback & burn of the platform token. There are no tiers. The split is the same at any volume.
| Share | Of router inflow | Of every trading fee | Used for |
|---|---|---|---|
| Ops | 50% | 4% | Servers and development |
| Buyback & burn | 50% | 4% | Buying the platform token and burning it |
- Anyone can run the split. It always sends the same 50/50, so no one can steer it.
- Ops is rounded down, and buyback gets the remainder, so the two always add up to exactly what came in.
- Ops goes only to the ops wallet set by Colony's admin. Colony's 8% can only be claimed by the router itself, never by a wallet.
Follow a day of trading
Pick a daily trading volume to see where the fees go.
At $1,000,000 traded in a day: $10,000 in fees, $2,000 to Meteora, $7,200 to creators, $400 to ops and $400 to buyback & burn.
Buying back the platform token
There is no platform token yet. Colony launches without one, and it will be launched later, on Colony itself. Until then, the buyback half just builds up in the buyback vault. Nothing can spend it. Once the token exists, that share buys it on the market and burns it. The design limits what a compromised key could do:
- Colony's admin, a 2-of-3 Squads multisig, sets the token and its pool once. It can never be swapped for another token.
- A separate buyback authority signs only the buyback swap. It can't touch any other router funds.
- Swaps go through one pinned DAMM v2 pool. Changing the pool takes a 48-hour timelock.
- The minimum output (min_out) is computed on chain from the pool's own price, with at most 3% slippage.
- Only Colony's buyback keeper key can call a buyback, as a standalone transaction. Each call and each day has a spending budget.
- Everything bought is burned.
A sandwich attack can still cost up to the slippage on one call's size. The budgets keep that small.
Where each payment can go
| Money | Can be claimed by | Goes to |
|---|---|---|
| Platform fee share | Only the fee router program | Ops and buyback, 50/50 |
| Creator fee share | Only the coin's launch record | Creator vault, or team vaults by share |
| Ops | The router | The ops wallet set by the admin |
| Buyback | Only the buyback keeper, once the token is set | Platform tokens, burned |
| Bond (currently 0 SOL) | If set: anyone after 14 days, or an admin slash inside the 14 days | Creator vault, or burned |