Funding, Fees & Revenue
Overview
Fee Structure for Predictions
When users trade shares (Yes/No) on a live prediction, a trading fee is applied to each buy or sell transaction, depending on your VIP Tier Level.
This fee is distributed as follows:
60% is allocated to reward creators and LP providers
40% goes to the Nostradamus dApp Treasury
Creator & LP Rewards
If the prediction was created by a user through the I Am Nostradamus system:
The creator receives a portion of the 60% reward pool based on:
Their VIP Tier (which boosts their fee share once the $NOSTRA token)
The amount of LP they contributed relative to the total required liquidity
LP providers also earn a share of the 60% proportionally to their liquidity contribution.
This structure incentivises active participation and fair distribution of platform fees.
Team-Listed Predictions
For predictions listed directly by the Nostradamus team, the full trading fee is directed to the dApp Treasury.
Initial LP Contribution
The creator of a custom prediction must contribute an initial amount of LP to the pool.
The range of contribution is between 1% and 20% of the total LP needed to approve the prediction.
This ensures that creators do not own all the LP.
LP Fees Distribution
The distribution of fees collected from trading volume depends on the creator's tier:
Silver Tier Creators
90% of fees go to LP providers
10% of fees go to the creator
Gold Tier Creators:
80% of fees go to LP providers
20% of fees go to the creator
Diamond Tier Creators:
70% of fees go to LP providers
30% of fees go to the creator
Seer Tier Creators:
60% of fees go to LP providers
40% of fees go to the creator
LP Contribution Fees
LP providers pay a 0.75% fee when adding LP.
This prevents users from adding LP to low-quality predictions and serves as a deterrent.
Creators also pay a 0.75% fee on their initial LP contribution.
Creators can pick between 1% and 20% of the required LP when creating.
A portion of the LP-related fees, proportional to the amount of liquidity they personally contributed will be earned by the creators.
Prediction Funding & Approval
Each custom prediction has a timespan of 3 hours to be fully funded.
If the LP requirement is not met within this timeframe, the contributed LP (including the creator’s) is returned to the funders, minus the 1%
LP Requirements
The required LP for a prediction depends on the category.
The funding requirement ranges between $500 and $20,000+, based on the estimated volume of the prediction.
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