# Pons V1 Fees Methodology

## 1. Overview

The total economic value paid by users to interact with Pons V1 is measured by Fees. Flat fees paid to launch new assets as well as trading fees generated from swaps on automated market maker pools are included in this metric. These fees are distributed to the protocol treasury, asset creators, and Uniswap. Insight into the overall economic activity and value generation of the Pons V1 ecosystem is provided by tracking this metric.

## 2. Data sources

- **Blockchain events**: `TokenLaunched` events from `TokenFactory` and `LegacyTokenFactory` contracts, and `Swap` events from Uniswap V3 `Pool` contracts, covering Robinhood Chain
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Pons V1 launch fee extraction

- **Purpose**: Capture flat fees paid to launch new assets on Pons V1
- **Logic**: `TokenLaunched` events are parsed from both `TokenFactory` and `LegacyTokenFactory` contracts. For each launch event, a flat fee of 0.0005 units of the native asset is recorded. This fee is allocated entirely to the protocol treasury
- **Key fields**: `block_timestamp` (timing), `product_id` (product identification)

### Component B: Pons V1 swap fee calculation

- **Purpose**: Calculate trading fees generated from swaps on Pons V1 pools
- **Logic**: Swap transactions on Uniswap V3 pools associated with Pons V1 launches are identified. A flat swap fee rate of 1% is applied to the swap volume. For positive swap amounts (where the pair asset is paid into the pool), the fee is calculated as 1% of the swap amount. For negative swap amounts, the fee is calculated as the absolute swap amount multiplied by 1% and divided by 99%
- **Key fields**: `block_timestamp` (timing), `pair_amount` (swap volume), `revenue_split` (protocol fee share), `protocol_share` (factory fee share)

### Component C: Swap fee distribution

- **Purpose**: Distribute calculated swap fees to protocol, creator, and Uniswap destinations
- **Logic**: The calculated swap fee is split based on the pool's protocol share and Uniswap's revenue split. The Uniswap share is calculated by multiplying the fee amount by the Uniswap revenue split, which is determined by `SetFeeProtocol` events from Uniswap V3 `Pool` contracts. The remaining fee is split between the protocol treasury and the asset creator based on the protocol share fraction (30% for standard launches, 10% for legacy launches). The protocol portion is calculated as the remaining fee multiplied by the protocol share, while the creator portion is allocated the remainder
- **Key fields**: `protocol_amount` (protocol share), `creator_amount` (creator share), `uniswap_amount` (Uniswap share)

### Component D: Normalization and USD conversion

- **Purpose**: Normalize fee amounts by decimal precision and convert to USD
- **Logic**: Launch fees and swap fees are aggregated by day and asset. Raw amounts are normalized by decimal precision using asset metadata, with native assets normalized by 18 decimals. Normalized values are multiplied by end-of-day price feeds to determine the USD value. Daily values are aggregated using UTC day boundaries
- **Key fields**: `timestamp` (daily boundary), `fees` (total USD fees)

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Exchanges (DEX)

Pons charges a 0.0005 ETH launch fee and a fee on every trade. Trade fees are shared between the protocol, the token creator and optional meme token buybacks.

Pons is a token launchpad on Robinhood Chain. Version 2 launches sell tokens on a bonding curve and graduate them into locked Uniswap v4 pools, while version 1 launches trade directly in Uniswap v3 pools.