# Protocol Fee Model

Rips operates with a simple, transparent onchain model that aligns product usage with platform sustainability. Every action in the app, whether opening a pack, claiming coins, or swapping assets, contributes to the ecosystem in measurable, verifiable ways.

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### What these mean

* **LP Fees (Post TGE):** *Trades in the primary $RIPS liquidity pool on Clanker include a dynamic 1%–3% protocol fee, consistent with Clanker’s standard launch configuration.*
* **Swap Fees:** *All in-app swaps are subject to a 1-2% fee.*
* **Pack Sales:** *All direct sales of packs in USDC.*
* **Coin Acquisition:** *Currently \~90% of pack revenue goes toward purchasing tokens for packs. All token acquisitions are onchain and fully transparent for anyone to verify. **As RIPS expands, this cost should decline** as more projects seek exposure through RIPS, leading to better pricing, direct token contributions, and improved acquisition efficiency.*
* **Operations:** *Operational costs associated with running Rips.*
* **Staking Rebates:** *USDC paid directly to those staking $RIPS.*
* **Treasury:** *Funds going to treasury will go towards community initiatives and token buy backs.*

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