Treasury LP Revenue Distribution

The Treasury's Uniswap V3 liquidity positions generate trading fees that accumulate without allocation (approximately 977,000 USDC collected to date). These fees represent protocol-generated revenue separate from exchange activities.

Distribution Schedule

Once annually at the end of December, accumulated LP fees in USDC will be distributed to qualifying stakers: approximately 808,800 USDC projected for 2026, a 20% increase over the originally scheduled August distribution.

All qualifying trading volume accumulated since January 1, 2026 counts toward the distribution in full. Positions built ahead of the original August date carry over unchanged; the extended window gives more traders the opportunity to qualify.

Eligibility Requirements

To participate in the year-end LP fee distribution, users must satisfy three conditions:

• Maintain an active COMMANDER or LEGEND tier stake as of the distribution date (end of December; the exact snapshot epoch will be announced in advance). A stake is active if its unlock time falls after the snapshot.

• Hold a staked amount at the distribution date that is at least equal to the largest amount of AEVO held in an active COMMANDER or LEGEND stake during the qualification period.

• Generate at least 10M in global trading volume (PERPS and OPTIONS; excluding pre-launch markets) between January 1, 2026 and the distribution date while holding an active COMMANDER or LEGEND tier stake.

For example, a user who staked 1M AEVO for 12 months and let the lock expire must re-stake at least 1M AEVO for 8 or 12 months to remain eligible. Re-staking a smaller amount does not qualify for the distribution.

Important note: If a stake expires or a user's tier drops below COMMANDER, the volume counter stops accruing but is not reset. Accrual resumes when the user re-stakes to COMMANDER or LEGEND. Volume generated while no COMMANDER or LEGEND stake is active does not count.

Volume Measurement

Qualifying volume is the sum of perpetuals and options volume:

Volume_i = PerpVolume_i + OptionsVolume_i

PerpVolume_i    = Σ (contracts × execution price)
OptionsVolume_i = Σ (contracts × underlying spot price × |delta|)

Options volume is delta-weighted: each trade contributes in proportion to its actual market exposure. Volume identified as wash trading or self-matched activity is discounted or excluded at the protocol's discretion.

Tier-Based Distribution Structure

Distribution follows a fixed allocation based on lock duration tiers:

Lock Duration Tier	Annual LP Fee Share
CADET	Not Eligible
EXPLORER	Not Eligible
COMMANDER	30% of Total
LEGEND	70% of Total

Allocation Methodology

Within each tier, individual allocations use a Weighted Allocation Score combining staked amounts and trading volume.

Score Formula

Score_i = 0.30 × (StakedAmount_i / Σ StakedAmount_tier) + 0.70 × (Volume_i / Σ Volume_tier)

The formula weights stake at 30% and volume at 70% within tier calculations.

Reward Distribution

Individual rewards represent each user's proportional tier share:

Reward_i = (Score_i / Σ Scores_tier) × Tier Pool

Individual Reward Cap

No single account may receive more than 15% of its tier's pool:

RewardCap_i = 0.15 × Tier Pool

Amounts above the cap are redistributed among uncapped participants within the same tier. If a tier cannot absorb its full allocation (including the case where a tier has no qualifying participants), the remainder is added to the other tier's pool. Any amount that remains undistributed after both steps rolls forward into the following year's distribution.

Accounts determined to belong to the same entity may be aggregated for allocation and cap purposes.

Key Considerations

• Multiple stakes by the same user throughout the year are combined for calculation purposes.

• Volume only accumulates while an active COMMANDER or LEGEND tier stake is held. If a stake expires, accrual pauses and previously accumulated volume is retained; accrual resumes upon re-staking to COMMANDER or LEGEND.

• Only accounts with an active COMMANDER or LEGEND stake at the distribution snapshot qualify. Users whose locks expire before the end of December should extend or re-stake ahead of the snapshot, at no less than their previously staked amount, to remain eligible.

• Any portion of the pool left undistributed by the individual reward cap rolls forward and grows the following year's distribution.