FeeCollector / BuybackManager

The Ledgity Protocol routes a portion of real yield into LDY buybacks and staking rewards, ensuring that token value is driven by actual economic performance, not emissions.

This mechanism is shared between the Community (veLDY stakers) and the Ledgity Council (governance & stewardship multisig).

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1. Performance Fees → FeeCollector

Each vault generates cash-flow yield from short-duration RWA strategies. A share of this yield is allocated as a protocol performance fee, collected on-chain by the FeeCollector contract.

Parameter	Value
Fee Type	Performance fee (taken from real yield, never principal)
Fee Asset	Stablecoins (USDC/EURC)
Custody	Smart contract controlled (non-custodial)

No deposit fees. No withdrawal fees if user holds sufficient LDY / veLDY.

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2. FeeCollector → BuybackManager

The BuybackManager receives stablecoins and executes market buybacks of LDY in a controlled, automated, transparent process.

Performance Yield → FeeCollector → BuybackManager → LDY Buyback (on-chain)

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3. Distribution Split: Community & Council

After LDY is bought back, the tokens are distributed into two staking pools:

Recipient Pool	Allocation	Purpose
veLDY Community Pool	80%	Rewards users who stake LDY and lock long-term → governance participation + aligned incentives
veLDY Council Pool	20%	Funds governance stewards, strategic contributors & long-term protocol sustainability

This structure ensures that:

• Users who commit and govern the protocol receive the majority of the value.

• The Council is funded without minting inflation or selling tokens into the market.

No new LDY is created. No dilution. All value comes from real yield.

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4. Optional Burn Program (DAO Controlled)

Governance (veLDY) may choose to:

• Adjust the split over time,

• Redirect a portion to burns (reducing circulating supply),

• Or allocate part to treasury for strategic partnerships.

This ensures maximum long-term flexibility.

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5. The Flywheel

TVL Grows
   ↓
More Real Yield Generated
   ↓
Performance Fees Flow Into FeeCollector
   ↓
BuybackManager Purchases LDY On-Chain
   ↓
80% → veLDY Community Rewards
20% → veLDY Council Pool
   ↓
More LDY gets Locked → Reduced Circulating Supply
   ↓
Stronger Governance + Higher Capital Efficiency
   ↓
Protocol Attractiveness Increases → TVL Grows Again

This is a self-reinforcing loop, entirely powered by cash-flow yield, not speculative incentives.

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In Summary

Mechanism	Result
Real yield → FeeCollector	Transparent revenue capture
BuybackManager → LDY purchases	Market-aligned value conversion
80% → veLDY Community Pool	User-aligned incentive structure
20% → Council Pool	Sustainable governance funding
Optional burn mechanism	Long-term supply reduction
No token inflation	Value is tied to real protocol performance

LDY becomes more valuable as the protocol grows — not by printing tokens, but by redistributing real economic yield back to the stakeholders who contribute to the system.