> ## Documentation Index
> Fetch the complete documentation index at: https://docs.dollhouse.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# The flywheel

Every trade on Dollhouse pays a 1% fee. 40% of it goes to the coin's creator, 40% is locked into the chain as buy liquidity under the coins that came before, and 20% goes to the developer. Each pool a trade passes through also keeps 0.075% of it, locked in buy liquidity in the same way. Everything placed in buy liquidity stays in the pool for good, so every coin in the chain keeps earning from every coin after it.

Buy-side liquidity is money placed as buy orders just under a coin's price, where it stays for good.

## The loop

Every coin in the chain is bought and sold with the coin before it (its parent coin). \$DOLL sits at the top of the chain and is bought with ETH. When you buy coin #3, your \$DOLL buys #1, that #1 buys #2, and that #2 buys #3, all in one transaction.

This is why the loop feeds itself. More interest in a round means more buying of the head coin, the newest coin in the chain. More buying means more money entering through \$DOLL and bigger fees. Bigger fees create bigger buy liquidity for the coins before it.

The loop runs in four steps:

1. A buyer spends \$DOLL on a coin. The purchase passes through every pool above that coin.
2. The 1% buy/sell fee distributes a cut to each pool it passes through.
3. The creator accrues creator share, and the chain share becomes single-sided buy liquidity under the earlier coins.
4. Each round adds a new coin, and every trade of that coin pays into every coin above it, forever.

The full fee split breakdown can be found in [Tokenomics](/tokenomics).

## Locked Liquidity Fee Mechanism

Each coin's chain fee share is placed as single-sided buy liquidity just under the price. The buy liquidity in each pool is locked forever and cannot be removed.

Every placement of buy liquidity appears on the Treasury page of the app, with links to its onchain transaction.

## Rounds add coins to the loop

A round is a timed contest that adds the next coin to the chain. Every candidate, a coin entered in the round, is priced in the head coin. Therefore, buying a candidate also buys the head coin and every coin above it. During the round, the head coin's creator gets half of the creator share on every candidate trade.

The winner becomes the new head coin, and earns the right to receive chain shares from subsequent coin launches.