# Fee Distribution

**All incoming** [**SafeSwap fees**](/learn/fee-structure.md) **are divided into three different parts:**

1. Foundation Pool
2. SafeNode Rewards Pool
3. Permanent Token Burns

## Part #1: Foundation Pool <a href="#part-1-foundation-pool" id="part-1-foundation-pool"></a>

This pool collects and holds fiat, stablecoins, and gas tokens gathered from both project listing fees and platform fees. It's set up to receive **50% of all platform fees** and **70% of the project listing fees**.

While occasionally this pool might tap into its reserves to purchase and retain SHA tokens, its primary role is to reinvest in business growth and development.

## Part #2: SafeNode Rewards Pool <a href="#part-2-safenode-rewards-pool" id="part-2-safenode-rewards-pool"></a>

Designed with the community in mind, especially those who own a [SafeNode](/learn/safenodes.md), this pool is the heart of the SHA Buyback Program. It uses its funds to acquire SHA directly from exchanges.

The exciting aspect of this system is that every transaction or swap on SafeSwap indirectly fuels the demand for SHA tokens. A substantial **45% of all platform fees** get directed here.

Additionally, when new projects decide to list on SafeSwap, they contribute **30% of the listing fee** (of the first $10,000) to this pool. As a result, SHA tokens bought through this mechanism are subsequently distributed amongst [SafeNode](/learn/safenodes.md) owners.

This distribution is determined based on the tier and activity level of each node, making the ownership of a [SafeNode](/learn/safenodes.md) even more enticing due to the potential rewards.

## Part #3: Permanent Token Burns <a href="#part-3-permanent-token-burns" id="part-3-permanent-token-burns"></a>

Beyond the rewards and growth, there's an embedded mechanism to ensure the longevity and scarcity of SHA tokens. A small **5% of the collected** [**platform fees**](/learn/fee-distribution.md) is used to purchase SHA tokens and instead of redistributing or holding, these tokens are permanently removed from circulation by being burned. This process inherently makes SHA a deflationary asset.

As the SafeSwap platform continues to grow, welcoming more projects and witnessing more swaps, the availability of SHA reduces, making its proposition even more attractive.

In essence, the more the token is utilized, the lesser it becomes in supply.


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