> For the complete documentation index, see [llms.txt](https://memechan.gitbook.io/memechan.fun/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://memechan.gitbook.io/memechan.fun/usdmc-token/how-the-distribution-works.md).

# How the Distribution Works

* **Fee Pool Creation**:
  * Each time a transaction occurs—whether it's the minting of a new token or a trade—MEMEchan collects a fee.
  * The collected fees are pooled together and 80% of the total fee pool is set aside for distribution to $MC token holders.
* **Reward Calculation**:
  * The SOL rewards are calculated based on the number of $MC tokens you hold at the time of distribution. If you hold 1% of the total $MC supply, you’ll receive 1% of the total SOL rewards.
* **Frequency of Distribution**:
  * The rewards are distributed periodically, ensuring that $MC holders are continuously incentivized to keep their tokens and participate in the platform.