The losers pot — the Filter Fund
When the bottom 6 tokens are filtered at hour 96, their protocol-controlled LP unwinds into WETH. Plus, every swap on every token throughout the week routes a 95-bps slice of fees into a season-wide accumulator. At hour 168, both flows are pooled into the Filter Fund — the WETH that funds everything that happens at settlement.The Filter Fund is the heart of the model. Losers don’t disappear; their liquidity is recycled into the winner and into the holders who got filtered.The split
The 2.5% champion bounty is taken off the top before anything else. The remaining 97.5% then splits five ways:- Visual
- Worked example
| Allocation | % of remaining | Purpose |
|---|---|---|
| Champion bounty | 2.5% (off the top) | Paid to the winning creator’s recipient address |
| Rollover | 45% | Distributed pro-rata to filtered-token holders via Merkle |
| Hold bonus | 25% | Reserved for 14-day holders of the winner |
| Mechanics | 10% | Week-specific incentives (events, missions, flash rewards) |
| Filter Fund Liquidity Reserve | 10% | Permanent LP backing the winner’s pool |
| Treasury | 10% | Protocol revenue |
Each line, what it does
Champion bounty (2.5%, off the top)
Champion bounty (2.5%, off the top)
Paid to the winner creator’s configured recipient. The bounty is
extracted before the standard split, so the rollover/bonus/POL/mechanics/treasury
lines all draw from the post-bounty 97.5%.The bounty scales with the pot: a quiet week with a 4 WETH pot pays a
0.10 WETH bounty; a viral week with a 40 WETH pot pays a 1.00 WETH
bounty.
Rollover (45%) — pro-rata to filtered holders
Rollover (45%) — pro-rata to filtered holders
The largest single line. The 45% slice market-buys the winner token,
then distributes the resulting winner-token shares pro-rata to filtered-token
holders via a Merkle airdrop.Distribution is time-weighted: your effective rollover entitlement
uses
min(balance_h72, balance_h96), so selling between hours 72 and
96 reduces your share. Designed to defeat bank-run dynamics around
the cut.Try the rollover calculator to see how
much your position would receive across different week scenarios.Hold bonus (25%) — for 14-day holders
Hold bonus (25%) — for 14-day holders
Reserved for any wallet that holds at least 80% of its rolled-in
winner-token amount for 14 days post-settlement. Bonus is divided
pro-rata among all qualifying holders at the 14-day mark.The point: reward conviction. Filtered-token holders who flip out
immediately get the rollover but not the bonus; holders who stay get
paid for the discipline.
Mechanics (10%) — week-specific incentives
Mechanics (10%) — week-specific incentives
A flexible budget for events, missions, flash bonuses, leaderboard
rewards. Allocations are operator-decided per week within a fixed
cap. Mechanics is the protocol’s loosest line — used to keep the
week feeling alive between launch and cut.
Filter Fund Liquidity Reserve (10%) — permanent winner LP
Filter Fund Liquidity Reserve (10%) — permanent winner LP
Deployed into the winner’s V4 pool as protocol-owned liquidity.
Locked permanently — never withdrawn. This is what turns a winner
into a durable asset instead of a one-week novelty.Post-settlement, every swap on the winner pool routes a 95-bps fee
slice back to the Filter Fund Liquidity Reserve, growing the
permanent backing over time.
Treasury (10%) — protocol revenue
Treasury (10%) — protocol revenue
Routed to the timelocked treasury contract. Funds protocol operations,
audits, infrastructure, and future development.
Why this split
Three constraints shaped the percentages:- At least 70% of the gross pot must be user-aligned — rollover, hold bonus, and winner-pool POL all flow back to users (filtered holders, conviction holders, future winner-pool traders). Current split is 78%.
- The creator bounty needs to bridge incentives without dominating — 2.5% is enough to make winning materially profitable for a creator with a token that found product-market fit, but small enough that creator strategy doesn’t distort the holder economics.
- Operational lines stay bounded and observable — mechanics + treasury together cap at 20%, both routed to public-traceable wallets.