2. Protocol Revenue & Buy-backs

2.1 - Fees

The foundation intends to propose a set of origination fees on tokenized real-world assets. Protocol fees could be paid in either stablecoin or fiat currency and will accumulate in the protocol’s treasury. Some of these fees could include:

• Loan Origination Fee: 0.15-25% of the loan amount, dependent on volume of loans.

• Create Loan Proposal Fee: $0.10 per loan.

• Finance Loan Proposal Fee: $0.25 per loan.

In future there may also be fees for distribution opportunities to PACT wallets. 

2.2 - Buy-Back Program

The protocol intends to implement a buy-back program funded through fees. This program will allocate a certain percentage of protocol fees to buy back $PACT tokens, which may either be held in treasury or burned to reduce circulating supply. We will propose using an auction model to buy $PACT, with an oracle to determine a minimum threshold. The allocation of protocol fees between buy-backs and staking rewards will be voted on periodically by $PACT holders to maintain a balance between minting and burning, and will start with a proposal to allocate half of protocol fees (after operational expenses) to each. .