> For the complete documentation index, see [llms.txt](https://docs.megalottery.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.megalottery.fun/the-lottery/tokenomics.md).

# Fees, prize pool & burn

There are two separate splits to understand:

1. how trading fees are divided when tokens are swapped to ETH;
2. how a completed lottery pot is divided.

## 1. Trading fee

| Action                                   | Intended production fee |
| ---------------------------------------- | ----------------------: |
| Buy through the registered Uniswap pair  |                      5% |
| Sell through the registered Uniswap pair |                      5% |
| Wallet-to-wallet transfer                |                      0% |

The contract accumulates fee tokens and periodically swaps them to ETH through the registered Uniswap router.

## Where the fee ETH goes

With the intended 20% marketing share of collected fee ETH:

| Destination                   | Share of collected fee ETH | Equivalent share of trade value |
| ----------------------------- | -------------------------: | ------------------------------: |
| Lottery treasury              |                        80% |                              4% |
| Immutable marketing recipient |                        20% |                              1% |

So the common shorthand is:

```
5% trading fee = 4% lottery treasury + 1% marketing
```

The marketing share funds growth and operating infrastructure such as the keeper, RPC access and hosting. If its direct ETH payment fails, that amount is reserved separately and is not counted as prize treasury.

## 2. Completed pot

Once a draw is committed, its saved pot is split:

| Destination      | Share of committed pot |
| ---------------- | ---------------------: |
| 1st-place winner |                    50% |
| 2nd-place winner |                    30% |
| 3rd-place winner |                    15% |
| Buyback and burn |                     5% |

## Buyback and burn

The contract attempts to swap the 5% ETH allocation for `$MEGA` through the registered Uniswap pool. Purchased tokens are sent to the permanent burn address.

If that swap fails because of pool conditions, settlement does not revert. The ETH stays in the treasury and can contribute to a future draw.

## Fixed at deployment

The launcher fixes the following values at deployment:

* total supply and decimals;
* buy, sell and transfer fee rates;
* marketing share and recipient;
* minimum 0.05 ETH treasury;
* wallet and transaction limit ceilings;
* Uniswap router and pair configuration.

The owner can permanently remove anti-whale limits but cannot raise them or change the fee settings after deployment.

{% hint style="warning" %}
Production addresses and final verified constructor values remain **TBD until mainnet deployment**.
{% endhint %}


---

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