> For the complete documentation index, see [llms.txt](https://whitepaper.usegpu.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.usegpu.app/protocol/how-it-works.md). # How It Works Follow the complete USE-GPU system from trading activity and creator fees to mining rewards and future GPU infrastructure. USE-GPU begins with token trading activity on pump.fun. Each trade generates a creator fee that enters the USE-GPU treasury. The treasury then routes that fee across the protocol's defined economic functions. ``` Trading activity ↓ pump.fun creator fee ↓ USE-GPU treasury ↓ Protocol allocation ↓ Mining, treasury growth, and other economic functions ↓ GPU infrastructure over time ``` ### Trading activity and creator fees USE-GPU launches on pump.fun. Trading activity generates a 0.30% creator fee, which flows to the USE-GPU treasury. The fee creates the protocol's Phase 1 funding source. Phase 1 does not include deployed GPU infrastructure. ### The treasury as the distribution point The treasury receives creator fee revenue and divides it across five defined allocations: | Allocation | Share | Role | | -------------- | ----: | ------------------------------------------------ | | Mining Pool | 35% | Funds mining rewards | | GPU Treasury | 30% | Builds capacity for planned hardware development | | Holder Sharing | 15% | Supports qualifying long-term holders | | Buyback & Burn | 10% | Supports token buybacks and permanent burns | | Operations | 10% | Supports protocol operations | This allocation connects present trading activity with participation today and infrastructure goals over time. ### Mining participation The Mining Pool receives 35% of creator fee revenue. Miners commit tokens and time to participate. Their mining power determines their share of the pool. Mining rewards depend on the mining pool and each participant's mining power. They are not guaranteed. The Mining and Reward Economics sections define the detailed mechanics. ### Building toward GPUs The GPU Treasury receives 30% of creator fee revenue. It supports planned GPU purchases, development, and growth as treasury capacity develops. USE-GPU starts as a fee-funded mining system. GPU infrastructure is built progressively in future phases, not assumed to exist in Phase 1. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://whitepaper.usegpu.app/protocol/how-it-works.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.