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Fee Overview

horse.fun allocates 5% of total entry volume to protocol operations: 
Total Race Volume: V SOL
Player Prizes (1st, 2nd, 3rd): 0.90 * V SOL
Jackpot Accumulation (Normal + Super): 0.04 * V SOL
HORSE Buyback-and-Burn: 0.01 * V SOL
Protocol Fee: 0.05 * V SOL
The total allocation is 100% of entry volume: 90% to direct prizes, 4% to jackpots, 1% to the HORSE buyback-and-burn, and 5% to protocol operations. Players receive 95% (90% prizes + 4% jackpots + 1% buyback value).

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Fee Allocation

The 5% protocol fee is split into two parts:

Referral Rewards

Up to 1% of total volumePaid to users who refer new players

Protocol Operations

4-5% of total volumeDevelopment, maintenance, and treasury

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Detailed Breakdown

From total entry volume (100%): 
Total Volume: V SOL
├─ 60% → 1st Place Winners
├─ 20% → 2nd Place Winners
├─ 10% → 3rd Place Winners
├─ 2% → Blazing Hoof (normal jackpot)
├─ 2% → King's Run (super jackpot)
├─ 1% → HORSE Buyback-and-Burn
└─ 5% → Protocol Fee
    ├─ Up to 1% → Referral Rewards (if applicable)
    └─ 4-5% → Protocol Treasury

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Protocol Treasury Usage

The 4-5% protocol fee funds sustainable operations:
  • Smart contract development and improvements
  • Frontend and user interface
  • Bug fixes and optimizations
  • RPC costs for Solana blockchain
  • VRF oracle fees for randomness
  • Website hosting
  • Protocol maintenance
  • Technical support
  • Treasury reserves

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Referral System

Up to 1% of entry volume is allocated to referral rewards:

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How It Works

1

Get Referral Link

Generate your unique referral link in your account dashboard
2

Share with Friends

Share the link with potential players
3

They Play

When referred users submit entries, you earn rewards
4

Receive Rewards

Earn 1% of their entry volume automatically

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Calculation

Referred user enters: B SOL in a race
Your referral reward: B * 0.01 = 0.01 * B SOL

Paid from the protocol fee, not from the player's winnings
Referral rewards come from the protocol’s 5% fee allocation, not from the player’s direct winnings.

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Fee Sustainability

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Why 5%?

The protocol needs sustainable revenue to:
  1. Cover operational costs (VRF, infrastructure, development)
  2. Fund continuous development (new features, improvements)
  3. Support growth (marketing, community)
  4. Build reserves (emergency funds, insurance)

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Volume-Based Sustainability

Protocol revenue scales directly with entry volume: 
Per race: 5% of volume
Races per day: 576

Daily revenue: 5% * daily total volume
Monthly revenue: 5% * monthly total volume
This revenue model funds:
  • ✅ All infrastructure and development
  • ✅ Marketing and community growth
  • ✅ Treasury reserves for long-term stability
Revenue depends on actual game activity. Higher volume = higher protocol sustainability.

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Transparency

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On-Chain Verification

All fee collection is verifiable on-chain:
  • Every race’s fee deduction is recorded
  • Treasury wallet addresses are public
  • Fee distribution is transparent
  • Anyone can verify anytime

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Treasury Wallet

Protocol Treasury: [Treasury Public Key]
View real-time balance and transactions on Solana explorers:
  • Solscan.io
  • Solana Beach
  • Solana Explorer

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Comparison to Alternative Models

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Why Not 0% Fees?

Q: Why not make the protocol free? A: Zero fees would mean:
  • ❌ No funding for development or improvements
  • ❌ No oracle payments (VRF costs money)
  • ❌ No infrastructure maintenance
  • ❌ Unsustainable long-term
A sustainable 5% fee ensures the protocol operates indefinitely.

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Why Not Token Incentives Instead?

Some protocols subsidize fees with token emissions. Problems:
  • ❌ Token inflation dilutes holders
  • ❌ Unsustainable when incentives end
  • ❌ Attracts mercenary users
  • ❌ Token price volatility affects protocol viability
horse.fun uses:
  • ✅ Sustainable fee-based model
  • ✅ Volume-linked token emission (no fixed inflation)
  • ✅ Deflationary jackpot burns + 1% buyback-and-burn
  • ✅ Long-term viability

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Player Impact

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Net Impact on Returns

With the allocation model: 
Enter 100 SOL over 10 races
Direct prizes (positions 1-3): 90% of volume
Jackpot contributions: 4% of volume (returned when triggered)
HORSE buyback-and-burn: 1% of volume (accrues to token holders)
Protocol fee: 5% of volume
Total player returns: 
Direct prizes to winners: 90% of total volume
Jackpot accumulation: 4% of total volume
HORSE buyback-and-burn: 1% of total volume

Note: Direct prizes only go to winning positions (1st, 2nd, 3rd)
For skilled players finding value entries, returns can significantly exceed the average.

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Next Steps

Pari-Mutuel System

Understand how the 95% player pool is distributed

Economic Analysis

Complete breakdown of protocol economics

Jackpots

Understand how 4% of total volume funds jackpots

Payouts

See how winnings are calculated