# FeeM Vault

The FeeM Vault is a multisig operated by Sonic Labs. It accumulates 90% of transaction fees generated by core token contracts on Sonic:

* wS
* USDC
* USDT
* EURC
* WETH
* WBTC

Funds in the FeeM Vault will be strategically deployed to strengthen the Sonic ecosystem, provide targeted support where apps need it most, and enhance asset incentives.

The tokens that generate the revenue for the FeeM Vault will also shape how it is spent. Apps that integrate and optimize for the tokens above will be first in line to benefit.

Key areas of deployment include:

<table data-card-size="large" data-view="cards"><thead><tr><th></th></tr></thead><tbody><tr><td><strong>Liquidity Incentives</strong><br>Directing FeeM Vault revenue toward strategic pools to deepen liquidity and reduce borrowing costs.</td></tr><tr><td><strong>Protocol Integrations</strong><br>Funding integrations of core assets like USDC.e, WETH, and wS into apps.</td></tr></tbody></table>

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More information about the distribution of funds from the FeeM Vault will be available soon.
{% endhint %}

## FeeM Vault Flywheel

The FeeM Vault is designed to compound growth across Sonic apps. As activity around key tokens increases, the Vault fills, and a self-reinforcing flywheel begins to spin:

1. **More usage of key tokens** increases the transaction fees redirected to the FeeM Vault.
2. **More revenue in the FeeM Vault** means more funding available for apps on Sonic.
3. **More funding for apps** leads to more integrations and incentives involving key tokens, attracting more users.
4. **More users** drive more activity and usage of those same tokens.
5. **And the cycle continues.**


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