Revenue Distribution

Overview

Shards implements a trading fee for transactions facilitated by the Shards Platform. This includes Team creation, Seat exchanges, as well as trading of Fractions. The trading fees provide the catalyst for the Shards revenue distribution model.

Revenue distribution in Shards occurs automatically on a per-season basis. All revenue earned during the competition season is accrued and only distributed at the end of the season. This means that early players and supporters of successful teams are more heavily rewarded as the uncertainty surrounding a Team’s success reduces as the season progresses.

Revenue is distributed according to revenue share configurations which are set prior to the season. To ensure fairness, revenue share configurations cannot be changed for the duration of the competition season. As a permissionless platform, Shards enables key stakeholders to configure how their revenue will be distributed via smart contract configurations.

The sections below details the various configurations as well as the relevant configuration owners and beneficiaries for each type of Shards event.