Fee Treasury
The Fee Treasury is the contract on the Hub that collects protocol revenue and allocates it according to the defined distribution model.
What it is
The Fee Treasury is the central revenue collection contract of SODAX, deployed on the Hub.
It consolidates fees generated across protocol modules and applies a predefined allocation logic to those funds. It does not participate in execution, routing, or liquidity provisioning. It exists to collect and distribute protocol earnings.
What it does inside SODAX
Within SODAX, the Fee Treasury receives revenue generated from intent execution fees, money market interest, AMM trading fees and stablecoin system activity amongst other sources.
Once consolidated, revenue is allocated according to a fixed distribution model:
- A portion is directed to Protocol-Owned Liquidity (POL).
- A portion accrues to the staking pool backing xSODA.
- A portion is used to acquire and burn SODA.
- A portion is reserved for DAO and ecosystem incentives.
The Fee Treasury does not actively deploy liquidity or determine routing strategies. It routes surplus value according to governance-defined parameters.
Why it exists
Cross-network execution generates revenue across multiple modules and networks. Without a centralized accounting layer, that value would remain fragmented and harder to manage. The Fee Treasury exists to:
- Consolidate protocol earnings.
- Apply consistent allocation logic.
- Separate revenue management from execution infrastructure.
By isolating revenue routing from liquidity operations and solver logic, SODAX maintains clearer economic boundaries.
What this means for users and partners
For users, the Fee Treasury is indirect. It governs how protocol-generated value is redistributed but does not affect individual trade execution.
For builders and governance participants, it defines how revenue supports:
- Protocol-Owned Liquidity growth.
- Staking value accrual for xSODA.
- Supply reduction via SODA burns.
- Ecosystem expansion.
Component boundaries remain clear:
- The Fee Treasury allocates revenue.
- POL provides execution inventory.
- xSODA represents staked governance weight and value accrual.
- The Solver coordinates execution.
- The Hub records settlement state.
The Fee Treasury manages value distribution. It does not execute trades or move liquidity for routing.