Fees on pools aren't distributed right away. They are streamed over 24 hours to holders of the token.
Every trade in a
pools.fun pool pays a 1% fee. Buys pay it in the quote asset (WETH, USDG, or the stock the token is paired with). Sells pay it in the token. The fee sits in the locked LP position until anyone, literally anyone, calls collect.
The split is fixed at launch and can't be changed:
For a normal launch the creator recipient is a wallet. For a fees-to-holders launch it's a smart contract deployed with the token and set as the permanent recipient. The creator never touches those fees again.
What that contract does, in one permissionless call:
Pulls its 90% of both legs from the locker.
Buys the token with the quote-asset fees. The buy is deliberately boring: priced off the tick at the start of the current second, max 100 ticks of movement, only through the locked liquidity, never more than one thin slice per fill, 5-minute cooldown. Dumping into it or front-running it loses money.
Streams everything it now holds to holders over 24 hours.
The stream is the fun part. There's no staking and no deposit. The contract keeps one running number: rewards streamed so far divided by eligible supply. Your share is your balance times how much that number grew since your last transfer.
Every buy, sell or send settles you at your pre-transfer balance, so you can't enter late and claim earlier stream time, and you can't lose accrued rewards by moving tokens. Claim whenever you want.
The pool itself, the distributor, and protocol wallets are excluded, so LP inventory never dilutes holders.
And there's a loop: the distributor's buy pays the same 1% fee, and 90% of that comes back to the distributor. It doesn't compound forever (each round keeps 0.9% of the last), but it means every fees-to-holders pool has a steady, bounded, price-limited buyer built in.
Hold the token, get the fees. That's it.
why else is this bullish?
you can deploy tokens that auto divert token fees to holders. in the current version the quote side (WETH, etc) auto buys the token and distributes to holders. anyone can distribute the token rewards. and all you need to do is hold the token.
in the next iteration you'll be able to choose which part of the fee to distribute, token, quote token, or both!
smart contract level fee distribution to holders built on
@SushiSwap v3 🦩🍣