9. Economic Model

Fee Structure

Dynamic Fee Model:

Pool Health	Fee Rate	Description
>75%	0.20%	Excellent health
50-75%	0.25%	Good health
25-50%	0.35%	Moderate health
<25%	0.50%	Low health

Fee Components:

• Base Protocol Fee: 0.15%

• Health Adjustment: 0.05-0.35%

• Flash Loan Cost: Covered by protocol

Fee Distribution

Fee Allocation:

pie
    title Fee Distribution
    "Recycling Pool Growth" : 40
    "Protocol Treasury" : 30
    "Insurance Fund" : 20
    "LP Incentives" : 10

Distribution Mechanism:

• Automatic distribution via smart contracts

• Real-time allocation to respective destinations

• Weekly rebalancing for optimization

• Governance-adjustable allocation ratios

Protocol Economics

Revenue Projections:

Month	Daily Volume	Avg. Fee	Daily Revenue	Monthly Revenue
1-2	$500K	0.35%	$1.75K	$52.5K
3-4	$2M	0.30%	$6K	$180K
5-6	$5M	0.25%	$12.5K	$375K
7-12	$20M+	0.20%	$40K+	$1.2M+

Cost Structure:

• Infrastructure: $5-10K/month

• Development: $50-100K/month

• Marketing: $20-50K/month

• Operations: $20-30K/month

Break-Even Analysis:

• Monthly Costs: ~$150K

• Required Volume: ~$2.5M/day at 0.20% fee

• Projected Break-Even: Month 4

Tokenomics (Future)

CLB Token Utility:

• Fee discounts for token holders

• Governance rights for protocol parameters

• Staking rewards from protocol revenue

• Liquidity mining incentives

Token Distribution:

• 20% Team & Advisors (4-year vesting)

• 15% Early Investors

• 35% Community Incentives

• 15% Protocol-Owned Liquidity

• 15% Treasury & Ecosystem

Governance Model:

• Token-weighted voting

• Proposal threshold: 0.5% of supply

• Execution timelock: 2 days

• Multi-tiered voting (simple/critical/emergency)

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