The obvious source of Protocol Fees is from trading. Traders pay fees to Liquidity Providers in exchange for making their swap possible. Fees are denominated in the Input Token when executing a trade.
The Protocol Fees for trades will be collected as a percentage of the trade fees already being collected (a fraction of a fraction). From the traders' perspective, there is no price increase.
Flash Loan Fees
Another source of Protocol Fees is from interest on Flash Loans.
Protocol Fee Distribution
30% of the fees collected through trade and flash loan protocol fees will be used to buy BEETS off the open market and redistribute them to fBEETS holders. 50% of protocol fees will be used to build a diversified DAO controlled LP treasury that will act as a solid tailwind for future growth. The remaining 20% will be kept by the team to fund continued development and infrastructure costs. 2% of the team funds will be diverted to secure that Beethoven X remain a positive contribution to the environment, directly removing all our Green House Gas Emissions Scope, 1, 2, 3 and invest in regenerative capturing solutions such as forestry, regenerative agriculture or direct air capturing.
Future governance
In the future, protocol fees as well as distribution will be defined through governance votes.