Pact Swap
Understanding PACT SWAPFee Pool Access

Fee Pool Access

Simplified mechanism for accessing protocol fees: smart contracts only


The Fee Pool is at the heart of how $PACT works. Every swap on PACT SWAP charges a fee in $CWEB, Coinweb’s infrastructure token. Those fees are stored transparently in an on-chain smart contract called the Fee Pool. Unlike traditional models that inflate supply or issue rewards, access is permissionless and built directly into the protocol. Holders of $PACT can burn a proportional share of the total supply, and in doing so, unlock that exact percentage of the Fee Pool.

The important part: once $PACT is burned, the corresponding amount of $CWEB becomes claimable by that wallet.

High level overview

In practical terms, the process looks like this:

Fee accumulation

  • Every swap on PACT SWAP collects a fee in $CWEB from liquidity providers.
  • All $CWEB fees are directed into the on-chain Fee Pool in Coinweb’s Layer 2.
  • The pool is transparent and auditable at all times.

Burn mechanism

  • A user chooses to burn a percentage of $PACT supply from their wallet.
  • The smart contract records the burn and calculates the exact same percentage of the Fee Pool.
  • Example: Burning 1% of total supply makes 1% of the Fee Pool claimable.

Claiming $CWEB

  • The unlocked $CWEB share becomes claimable directly by the wallet that performed the burn.
  • Once claimed, the $CWEB is transferred on-chain to the same wallet.
  • Circulating supply of $PACT is reduced permanently.

Why this matters

This design creates a self-reinforcing loop:

  • More trading → More $CWEB fees collected.
  • More fees → Users burn $PACT for access to fee pool.
  • More burning → Lower circulating supply of $PACT.
  • Lower supply → Stronger alignment between protocol use and token function.

No emissions, no inflation, no hidden mechanics, just protocol usage creating transparent value, directly accessible by those who hold and burn $PACT.

👉 For more details on the mechanism, see the PactswapWhitepaper

Was this documentation helpful? Any suggestions?

Last updated on