> For the complete documentation index, see [llms.txt](https://arcafinance.gitbook.io/arcafinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arcafinance.gitbook.io/arcafinance-docs/tokenomics/usdarca-tokenomics/fee-monetization.md).

# Fee Monetization

## *FeeM Program*

*The Fee Monetization (FeeM) program is a cornerstone of Arca Finance's sustainable tokenomics, capturing value from protocol activity across both exchanges.*

### *Revenue Sources:*

* *90% of transaction fees from:*
  * *Deposits*
  * *Withdrawals*
  * *Position rebalancing,etc.*
* *Collected $S (Sonic's token)*

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## *Revenue Allocation*

*FeeM revenue is strategically distributed:*

| *dApp Treasury* | *100%*      | *Development, marketing, operations, Reduce supply, Fund emissions, etc.* |
| --------------- | ----------- | ------------------------------------------------------------------------- |
| <p><br></p>     | <p><br></p> | <p><br></p>                                                               |

***

## *Impact on Ecosystem*

*The FeeM program provides multiple benefits:*

* *Protocol-owned liquidity growth*
* *Creates "Arca Finance Wars" effect similar to "Curve Wars" in DeFi*