# Fees

Once PepperDEX is launched, the PEP token will become eligible to be staked to the network. PEP stakers will receive 30% of the total fees generated by the entire PepperDEX platform in USDC. A complete breakdown of how fees are distributed can be seen below:

## Fee Distribution

Hxro Network Transaction Fees (0.025%\*)

* 100% - USDC distributed to HXRO stakers

DEX Transaction Fees (0.025%) & oPEP Redemption Fees

* 30% - PEP Staking Rewards
* 20% - PEP/SOL LP Protocol Owned Liquidity (POL) up to $5m & Trading Incentives
* 20% - DAO Treasury (Growth + Insurance)
* 20% - HXRO Buyback and Stake with the Maximum Locking Period
*   10% - Referrals

    \*For fees paid by unreferred traders, this 10% will go to PEP stakers.\*&#x20;

\*While transaction fees will take some time to generate, the design creates a virtuous cycle of liquidity with reflexivity.

## PEP Staking Rewards

30% of DEX transaction fees plus [oPEP](pepper-token-pep/opep) redemption fees are allocated to PEP Stakers in USDC, distributing real yield to PEP stakers.

## DEX Based Fee Incentives for Traders & PEP Buyback

As previously mentioned, PepperDEX Perps & Futures are powered by Hxro Network's "Dexterity Protocol," which means deep, consistent liquidity for all users. PepperDEX will initially allocate 20% of all DEX transaction fees to the PEP/SOL LP POL up to $5m. Once the $5m threshold has been reached, the revenue allocated to the PEP-SOL LP POL will be re-allocated to a PEP buyback program. From that point forward, 20% of all fees generated by PepperDEX will be used to buy PEP on the open market. These PEP tokens will be redistributed to traders as trading incentives in the form of oPEP. By incentivizing traders in this way, PepperDEX will ensure the long-term health of the Pepper DAO treasury by driving more volume and thus, more fees through the DEX.
