Buybacks & fee routing

Main-pool protocol fees can fund recurring market purchases of FWA. The current main pool sends its configured buyback share to FWAV2Buyback, which buys the shared token and directs it to depositor rewards, purchaser epochs, and burning.

From pool fees to a buyback

• Fees accrue in the main pool. Its acquisition cuts, applicable NFT settlement cuts, retained bid amounts, and early-crown fees follow their respective settings.
• A payout funds the reserve. Anyone can call the pool's payoutFees(). The configured buyback percentage goes to the buyback contract; any remainder goes to the configured payout address.
• A separate transaction executes the buyback. Anyone may call buyback() when it is unpaused, sufficiently spaced from the previous call, and has ETH to spend. The caller receives the configured ETH incentive after successful execution.

Adding ETH to the reserve does not itself perform a swap. Each execution uses available ETH up to the configured cap, subtracts the caller incentive, and spends the remainder on FWA. The purchase must fill in full within the configured price limit. If it fails, the transaction reverts without consuming the reserve or paying the incentive.

How the purchased tokens are used

• Depositor share: funds active main-pool listings by square-root backing weight. If there are no active reward weights, this share is burned instead.
• Purchaser share: adds to the current reward epoch's token pot for successful acquisitions assigned to that epoch.
• Burn share: destroys tokens and reduces FWA's total supply.

Source defaults are 40% to depositors, 40% to purchasers, and 20% burned. Default execution uses up to 1 ETH, at least one block between calls, and a 0.5% caller incentive. These are configurable defaults, not verified live settings: the deployment sequence copies reviewed settings from the existing token buyback route. Check the current contract before relying on a split or execution limit.

Read earning and claiming for how the resulting reward balances become claimable.

Keep the fee routes separate

Accepting an allocated NFT's bid as FWA spends that listing's configured token-settlement budget and sends the purchased tokens to its purchaser. Claiming a purchaser token-buy allowance likewise pays tokens to that purchaser. Neither purchase uses the recurring buyback's depositor/purchaser/burn split or pays its caller incentive.

The token contract also has an existing buyback route with its own configured reward recipient. That route and the current main-pool recurring buyback have separate reserves, execution settings, and reward destinations. Sending ETH to one does not fund the other.

The deployment plan redirects the custom-pool factory's protocol-fee recipient to the current main-pool buyback. This can add fee income to its reserve, but does not grant main-pool reward shares to custom-pool owners or purchasers. The factory's actual configured recipient determines where its next fee payout goes.

Market trading fees

The shared ETH/FWA market's 1% trading fees use the hook's configured recipient, separately from main-pool fee payouts. The deployment plan installs a 64% / 8% / 8% / 20% splitter: three established recipients receive the first three shares, and the Punk lister strategy receives the final 20%.

That change affects future shared-market fee routing. It does not move ETH already held by an earlier recipient. Planned wiring does not prove those administrative transactions have executed; the hook's current fee destination remains authoritative.

For the source of the pool's fees, see main-pool fees. For the token and market itself, return to the $FWA overview.