> For the complete documentation index, see [llms.txt](https://the-fedz.gitbook.io/the-fedz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://the-fedz.gitbook.io/the-fedz/the-fedz-elements-rules-and-tokenomics/where-does-the-yield-come-from/how-the-yield-is-allocated.md).

# How the Yield Is Allocated

Revenue inside The Fedz follows a **clear priority**, not fixed percentages.

#### 1. System Stability Comes First

Before any yield is distributed, the system must:

* maintain the $FUSD peg
* honor redemptions
* keep markets liquid
* absorb stress events

Survival comes before distribution.

***

#### 2. Long-Term Stakeholders Are Compensated

After obligations are met, surplus flows to **long-term stakeholders**, primarily **The Fedz NFT holders**.

NFT holders take on:

* long-term commitment
* illiquidity
* exposure to systemic risk

They are compensated because they stay when others can’t.

This is an **equity-like residual claim**, not a guaranteed return.

***

#### 3. Active Participants Are Paid for Activity

Liquidity providers and other contributors are compensated:

* for providing liquidity,
* for participating in markets,
* for supporting system operation.

These rewards depend on usage and conditions.

***

#### Summary

* Yield comes from operating fundamental markets
* Users pay by trading and holding
* Stability and liquidity are the products
* Bank-run risk is the core cost
* Capital efficiency amplifies revenue
* Yield is distributed only after survival

> **In The Fedz, yield is earned by building and sustaining markets.**