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

# The Fee Machine

Hyperlynx is built as a **fee machine**. Real trading produces real fees, and those fees flow back to the people who hold and stake $LYNX.

## The split

Of the protocol's share of swap fees:

* **69% → yLYNX stakers**, as yield that auto-compounds.
* **31% → buyback** of $LYNX.

```
swap fees ──▶ 69%  yLYNX stakers (compounding yield)
          └──▶ 31%  $LYNX buyback
```

## Why this design

* **Volume is the product.** Every trade pays fees. More usage = more flow to holders, continuously.
* **No emissions death-spiral.** The protocol does not mint or sell $LYNX to fund rewards. Staking yield comes from real fees.

{% hint style="info" %}
This is why claiming at TGE has no lock and no penalty — see [Claiming](broken://pages/163cd9459abf56276653cd42a75ac7a2b84a7106). The flywheel doesn't need to trap anyone; it's powered by usage.
{% endhint %}

## What it means for you

If you believe Hyperlynx will be used, the way to be on the right side of the machine is to **hold and stake** — and earn the fee share for as long as the venue trades.


---

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