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 Whitepaper
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