# Protocol Revenue

At Catex, we prioritize sustaining project costs and ensuring a robust revenue stream for our DAO and community. This commitment allows us to foster continuous growth and support our vibrant ecosystem. We also use our voting power on core `CATX` pools to collect bribes and enhance protocol liquidity. Moreover, a portion of emissions is allocated to the treasury for operational needs. This approach helps us maintain long-term viability and prosperity.

### Swap Fees

The DAO Treasury holds `veCATX` tokens to optimize liquidity and collect swap fees. These fees are used for various operational activities, such as `CATX` token buybacks and burns, incentivising core pools, and funding development efforts. This strategic allocation ensures the efficient use of resources to enhance our ecosystem.

### Emissions and Treasury Allocation

A 4% portion of the emissions is allocated to the treasury. The `CATX` tokens in the treasury are used at the team's discretion to support various initiatives, including incentivizing core pools, funding developments, and marketing. The team has the flexibility to allocate these tokens strategically for the benefit of the project and its ecosystem.

### oTokenomics

Revenue from `oCATX` redemptions is strategically allocated to strengthen the Catex ecosystem. Typically, Catex follows a structured approach, though this may vary depending on market conditions and ecosystem performance. For instance, during a downtrend, a larger percentage may be used to buy back `CATX`, supporting its price rather than being distributed as `USDC` incentives or added to the treasury. This flexibility allows Catex to adapt and ensure sustainable growth and stability across different market environments.\
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The ideal allocation of `oCATX` redemption revenue is structured as follows:

* 30% used to buyback `CATX` and incentived as `bveCATX`
* 30% incentivezed as `USDC`
* 40% allocated to the treasury for operations and marketing

This strategic distribution ensures a balanced flywheel mechanism, with 60% of weekly `oCATX` redemptions specifically designated for `veCATX` voters, thereby fostering a self-reinforcing cycle of growth and participation within the ecosystem.

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However we reserve the right to adjust these percentages depending on marketing conditions. In some instances we might allocated the '30% `USDC`' allocation to be used for the buyback and bribe of `CATX`.
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