🧾Protocol Fees
Cosmos Millions aims to remain accessible and faire to every participant, in order to abide to this statement the Fees implementation must respect the following conditions:
Transparent -> The amount of fees collected are community governed, it is up to the Lum stakers to define its structure
Useful -> The fees collected must go toward the growth of the protocol, its feature and infrastructure
No-loss -> Millions aims to be "loss free", fees should always be collected over yield generated by the Pool assets, and never over the Deposits or Withdrawals of its participants
As described in the previous sections Draw Mechanism and Prizes lifecycle, fees get collected upon distributing a Prize to a Winner.
At the time of writing, a 10% fee over the Prize won is collected and distributed to the Lum Stakers (module parameter fees_stakers up to governance changes).
Lum Stakers fees distribution behaves similarly to the native Lum Staking rewards and is directed proportionally to each stakers portion of the total assets staked. Lum stakers must therefore Claim (as usual) their Staking rewards in order to receive their portion of the fees coming from the Cosmos Millions protocol.
The following flow summarize this behaviour:
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