> For the complete documentation index, see [llms.txt](https://pudu-1.gitbook.io/pudu_docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pudu-1.gitbook.io/pudu_docs/tokenomics/flywheel.md).

# Flywheel

PuDu was conceived based on two fundamental principles:

* Ensure **accessibility to our betting platform**, so we selected **USDC** as our betting currency, given its use as the primary stablecoin in DeFi.
* With a commitment to **minimizing fees for our users**, so we designed **Redistribution**.

<figure><img src="/files/XXMgByIQLacl4M8aRMJ8" alt=""><figcaption></figcaption></figure>

## Redistribution

$PUDU will reach its full supply a month after the launch, with no further emission. Nevertheless, we aim to provide a fee discount to our users, termed Redistribution.

To ensure the long-term development of PuDu, aligning token holders and users is crucial, and that's where Redistribution comes in. It involves a fee extracted from the trading tax (from the treasury basket) and redistributed as $PUDU to the product users.

This groundbreaking approach facilitates a symbiotic relationship: users of the product can become token holders, and vice versa. As token holders, users gain access to revenue sharing and additional discounts on the product.

There you have it! The flywheel is set in motion. Let the speculators cover your betting fees!

### How will it work ?&#x20;

On one side, we have $PUDU’s trading, with a segment of the trading volume designated for Redistribution. On the other side, there's the betting platform, where a 5% fee is applied (for those without $PUDU) on the entire betting volume.

A daily snapshot will capture the $PUDU's volume and the fees paid on the betting volume.&#x20;

The fee derived from $PUDU's volume will be utilized to repurchase some $PUDU from the market. These repurchased tokens will then be distributed to the product users following a specified formula:

$$
R(u)= V(u)\*F
$$

Where&#x20;

* R(u) = User's Redistribution
* V(u) = User's part of the daily volume of the platform&#x20;
* F = Daily fee paid on the platform

### Example :

* 1% of $PUDU's trading volume will be designated for Redistribution.&#x20;
* Given an average fee of **4%** on the platform, incorporating users holding $PUDU with a discount and those who do not, let's illustrate with an example.&#x20;
* Suppose there was $40,000 volume on $PUDU and $10,000 volume on the platform. This would mean $400 ($40,000 \* 1%) allocated to Redistribution and an additional $400 ($10,000 \* 4%) in fees paid on the platform.

Now, let's consider Bob and Alice, two users of the platform, both wagering **$1,000** (equivalent to 10% of the daily volume each). The key distinction is that Bob holds a significant amount of $PUDU, resulting in him paying only a **3% fee** instead of the standard 5%. On the other hand, Alice, lacking any $PUDU holdings, paid the standard **5% fee**.

Therefore, Bob paid a $30 fee and Alice a $50 fee.

Now let's calculate their Redistribution :&#x20;

Bob : R(u) = V(u)\*F= 10%\*400 = **$40**

Alice : R(u) = V(u)\*F= 10%\*400 = **$40**

In the final tally, Bob incurred a net cost of $30 - $40 = -$10 for his bet, while Alice paid $50 - $40 = $10, reflecting a 1% fee and an 80% discount.

Yes, you read it correctly! Bob received a greater Redistribution than the fee he paid, essentially being rewarded for placing a bet.

This distribution formula not only provides everyone with a substantial fee discount but also serves as an additional incentive for holding $PUDU, thereby reinforcing the overall momentum of the flywheel.

{% hint style="danger" %}
Please note that all the numbers used in the example  are not real numbers (even if this case could happen) and you shouldn't take the outcomes of the example as granted&#x20;
{% endhint %}