> ## Documentation Index
> Fetch the complete documentation index at: https://docs.viva.dog/llms.txt
> Use this file to discover all available pages before exploring further.

# Economic model

> How VIVA pools price tokens, split fees, tax profitable sells, and support a rising floor.

## Read this first

This page explains **how money moves** in VIVA pools for traders and creators. Pools may use **BNB** or **USDT** (or another supported quote) as the settlement asset. **Always confirm amounts on the Trade / Create screen** before you sign — live rules can change with deployments.

## In 30 seconds

Each meme token has **its own pool**. You trade and borrow against **that pool**, not a public order book of strangers.

| Mechanism            | Summary                                                                                                                                          |
| -------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |
| **Buy / sell**       | Price blends **floor price** (redemption track) and a **premium curve** (more supply → higher price).                                            |
| **Trade fee**        | **1.25%** on buys and sells (on the amounts shown in-app).                                                                                       |
| **Borrow fee**       | **3%** one-time when you open or add borrow — **no daily interest**.                                                                             |
| **Sell profit tax**  | **5%–30%** on **profit only** when you sell above your tracked cost.                                                                             |
| **Fee split**        | Half to the **protocol treasury**; half shared between **token creator** and **floor support** (creator share set at launch, within app limits). |
| **Profit tax split** | Half strengthens the **floor**; half goes to a **tax treasury** used for community programs off-chain (e.g. points / platform token).            |
| **Anti-abuse**       | If you **buy from the pool in the same block**, you **cannot sell back in that block**.                                                          |

## Fee table (typical)

| Action          | Rate           | What it applies to                           |
| --------------- | -------------- | -------------------------------------------- |
| Buy             | **1.25%**      | Quote you pay in                             |
| Sell            | **1.25%**      | Gross payout before profit tax               |
| Borrow          | **3%**         | New borrow amount (before fee)               |
| Create token    | **\~0.01 BNB** | One-time when launching a pool               |
| Sell profit tax | **0–30%**      | **Profit only** — see [Fees](/concepts/fees) |

## Where trade and borrow fees go

For every **1.25%** trade fee or **3%** borrow fee:

1. **50%** → protocol **treasury**.
2. **50%** → split between:
   * **Token creator** — you choose up to **15%** of the **total** fee at launch; claimable in the app when available.
   * **Floor support** — at least **35%** of the **total** fee; used to **raise the floor** over time.

**Example:** A trade generates **12.5 USDT** in fees, and you set **10%** of total fees to the creator → treasury **6.25**, creator **1.25**, floor **5.00** USDT.

Borrow fees follow the **same split**.

## Sell profit tax

When you sell above your **average cost** in the pool, tax applies only to the **gain**:

| Profit vs your cost | Tax on the profit                                |
| ------------------- | ------------------------------------------------ |
| Small gain          | **0%**                                           |
| Moderate gain       | **5% up to 25%** (scales with how much you made) |
| Very large gain     | up to **30%** cap                                |

Half of that tax supports the **floor**; half goes to the **tax treasury** for off-chain community programs.

## Floor vs trading price

Two ideas work together:

1. **Floor** — a protocol-backed **minimum redemption track** that is designed to **rise** as fees and tax flow in, not fall from normal trading.
2. **Trading curve** — the **market price** you see on charts; it moves as supply grows and is meant to stay **at or above** the floor under normal rules.

**Memory aid:** floor = backing and borrow reference; curve = “more buyers → higher next price.”

Details: [Floor price and curve](/concepts/floor-and-curve).

## Borrowing (economic view)

* Collateral is valued at the **floor**, not a CEX ticker.
* **3%** opening fee on new borrow; **no** protocol interest clock.
* See [Borrowing](/concepts/borrowing).

## Protections you may notice

| Rule                       | Why it matters                                   |
| -------------------------- | ------------------------------------------------ |
| Same-block sell ban        | Harder to sandwich yourself right after a buy    |
| Sell liquidity check       | Pool will not promise more quote than it can pay |
| Slippage limits in the app | Bad fills revert instead of executing silently   |

## Plain glossary

| Term              | Meaning                                                              |
| ----------------- | -------------------------------------------------------------------- |
| **Quote**         | BNB, USDT, or whatever the pool settles in                           |
| **Floor price**   | Protocol minimum redemption reference                                |
| **Market price**  | What the next trade roughly prices at on the curve                   |
| **Floor support** | Fee share reserved to lift the floor over time                       |
| **Tax treasury**  | Pool of quote from profit tax; used off-chain for community programs |