Pons Creator Fees and Buybacks Explained: How Much Do Token Creators Earn?

The base trade fee: 1% on every trade

Every trade on a Pons V2 token pays a standard 1% fee, and this applies identically whether the trade happens on the bonding curve before graduation or in the locked Uniswap v4 pool afterward. It is not a fee the creator sets - it is a fixed protocol-level parameter that applies the same way to every launch.

Because the rate does not change at graduation, a creator does not need to plan for a fee cliff or a change in trading economics at the moment a token migrates into its graduated pool. What does change is where that 1% is ultimately routed.

How the fee splits between protocol, creator and buyback

Of the 1% collected on every trade, the Pons protocol itself receives 30%. The remaining 70% is allocated between the creator and an optional token buyback, rather than going entirely to one or the other by default.

• Pons protocol: 30% of the 1% trade fee.
• Creator and optional buyback combined: 70% of the 1% trade fee.
• The exact creator-versus-buyback split within that 70% is a launch-level configuration rather than a fixed universal number, which is why two tokens can show different creator payout patterns even though both pay the same 1% base rate.

The optional creator tax, capped at 10%

Separately from the base 1% trade fee, a creator can add an additional tax at launch time, capped at 10%. This is opt-in and configured when the token is created - it is not applied by default, and a creator who wants the simplest fee structure for their token can leave it unset.

Because this additional tax sits on top of the base 1% rather than replacing it, a creator tax set near the 10% cap meaningfully changes the total cost of trading the token compared to a launch with no additional tax. For traders evaluating a new token, checking whether - and how much - of this optional tax is active is a reasonable part of reviewing a launch before buying in.

How buyback vesting works

Tokens allocated to the buyback side of the fee split are not distributed immediately. Bought-back tokens vest over five years, with the vested amount split between the creator and the protocol over that period.

This long vesting horizon means the buyback mechanism functions more like a slow-release alignment tool than a short-term price support lever - it is not designed to create an immediate, visible buy-side impact at any single point after launch.

Creator fees before vs after graduation

The fee rate and the protocol, creator and buyback split do not change when a token graduates from the bonding curve into its Uniswap v4 pool. The main practical difference is venue: pre-graduation trading happens directly against the curve, while post-graduation trading happens against the locked pool through the pool's hook, which is also what collects the fee on that side - the pool itself carries no separate AMM-level fee tier on top.

For a creator tracking earnings across a token's lifecycle, this means fee accrual is continuous rather than something that resets or changes structure at the graduation event itself.

What this means when planning a launch

A few practical takeaways for a creator deciding how to configure a launch.

• The 30% protocol share and the 1% base rate are fixed - there is nothing to configure here regardless of launch size or quote asset.
• The optional creator tax, up to 10%, is the main lever a creator directly controls, and it is worth weighing against how it affects a token's attractiveness to traders comparing several new launches.
• Buyback allocation pays out over a five-year vesting schedule, not immediately, so it should be treated as a long-horizon mechanism rather than a source of near-term creator income.

FAQ

• What percentage does Pons take from every trade? Every trade pays a 1% fee. Of that, the Pons protocol receives 30%, and the remaining 70% is allocated between the creator and an optional buyback.
• Can a creator add extra fees on top of the base 1%? Yes - a creator can configure an additional tax at launch, capped at 10%, on top of the standard 1% trade fee. This is optional and set per launch.
• How long does buyback vesting take? Tokens allocated to the buyback vest over five years, with the vested amount split between the creator and the protocol over that period.
• Does the fee change after a token graduates? No - the 1% base fee and the protocol, creator and buyback split stay the same before and after graduation. Only the trading venue changes, from the bonding curve to the locked Uniswap v4 pool.