> For the complete documentation index, see [llms.txt](https://docs.rujira.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rujira.network/how-it-works/understanding-revenue-flow.md).

# Understanding Revenue Flow

The diagram below summarizes where revenue is collected and how it is distributed between RUJI stakers, Rujira-owned protocol liquidity, THORChain-owned protocol liquidity, and the THORChain Reserve.

For revenue shared equally between Rujira and THORChain, each side redirects one-third of its share toward protocol-owned liquidity. This results in an effective distribution of 33.33% to RUJI stakers, 16.67% to the Rujira Ecosystem Fund, 16.67% to the THORChain POL Fund, and 33.33% to the THORChain Reserve.

Revenue attributable entirely to Rujira is distributed 66.67% to RUJI stakers and 33.33% to the Rujira Ecosystem Fund.

<figure><img src="/files/xyBrqZgx0s3A8RN4eRo6" alt=""><figcaption></figcaption></figure>

Rujira currently uses 5 revenue collector and converter contracts:

* **Revenue Collector 1 (RUJI Swap & bRUNE):** Used to collect RUJI Swap affiliate fees and bRUNE fee on bonding rewards, which are sent 100% to RUJI stakers since Rujira pays the Base Layer liquidity fee on the swaps and the Node Operators collect their own bonding fee from bRUNE. The contract is also used to aggregate Rujira's share of revenue from other products. Revenue is converted to USDC and distributed 66.67% to RUJI stakers and 33.33% to the Rujira Ecosystem Fund, where it is used to build Rujira-owned protocol liquidity.
  * Contract address: [thor1mcy9jtp4kzl8q2lvdgfgsl8jvqrf504uphkf0pz2p9wud8tsntesjvccew](https://thorchain.net/address/thor1mcy9jtp4kzl8q2lvdgfgsl8jvqrf504uphkf0pz2p9wud8tsntesjvccew)
* **Revenue Collector 2 (RUJI Trade):** Used to collect revenue from RUJI Trade. The revenue split between RUJI stakers and THORChain Base Layer is initially set at 50/50. However, part of this revenue is generated by the [virtualization strategy](/core-products/ruji-amm/base-layer-virtualization-strategy.md) which executes swaps on the Base Layer and pays THORChain liquidity fees. The fee pays by Rujira to THORChain should be deducted from the 50% share of revenue going to THORChain. Given it's technically not possible to differentiate the source of liquidity for a trade at the time an order is filled, we use historical data to periodically adjust the distribution weights to compensate for excess revenue sent to the Base Layer by RUJI Trade. Revenue from RUJI Trade is collected in various tokens that are split between Revenue Collector 1 and Revenue Collector 4 using the appropriate weights.
  * Contract address: [thor1gm8q2gr25nzzsxzdp2mpja4hyvyhjlr4s6krcsgv2y953uu0js3qhwpus7](https://thorchain.net/address/thor1gm8q2gr25nzzsxzdp2mpja4hyvyhjlr4s6krcsgv2y953uu0js3qhwpus7)
* **Revenue Collector 3 (Other Core Apps):** Used to collect revenue from all the other core apps, which is collected in various tokens and split between Revenue Collector 1 (50%) and Revenue Collector 4 (50%).
  * Contract address: [thor1jduxxzpyyvrgzx7zcnl7e5cdj34tnq5jxy00a4wp86szye25dndq575c0y](https://thorchain.net/address/thor1jduxxzpyyvrgzx7zcnl7e5cdj34tnq5jxy00a4wp86szye25dndq575c0y)
* **Revenue Collector 4 (Base Layer):** Used to collect the share of core apps revenue going to THORChain Base Layer. Revenue is received from Revenue Collectors 2 and 3 and converted to RUNE. It is then distributed 66.67% to the [THORChain Reserve](https://thorchain.net/address/thor1dheycdevq39qlkxs2a6wuuzyn4aqxhve4qxtxt), where it is included in THORChain’s Gross System Income, and 33.33% to the THORChain POL Fund, where it is used to build THORChain-owned protocol liquidity on Rujira.
  * Contract address: [thor1txum04wp8ykqudphxy9prtwsd9jpcm2kwdaxctxeeyr6g0r0we9qpfdktr](https://thorchain.net/address/thor1txum04wp8ykqudphxy9prtwsd9jpcm2kwdaxctxeeyr6g0r0we9qpfdktr)
* **Revenue Collector 5 (RUJI Index):** Following the merger with Nami, this contract collects all revenue generated by the RUJI Index & Earn vertical. 100% of these proceeds are sent to Revenue Collector 1 to be distributed to RUJI stakers, since the indexes and earn prodcuts are built exclusively on core applications that already contribute their security budget to the base layer.
  * **Contract address:** [thor132u9qpm9gfdqtgwxwl8ty409s6zmewfrum2k6wvtvtyphdn5urzsej764l](https://thorchain.net/address/thor132u9qpm9gfdqtgwxwl8ty409s6zmewfrum2k6wvtvtyphdn5urzsej764l)


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