The flywheel

The Fission flywheel is a closed loop: external trading activity funds an engine whose outputs are token burns, not treasury accumulation.

Loop diagram

flowchart LR
  subgraph inflow["Inflow"]
    V["Volume on Clanker pool"]
    F["USDC LP fees"]
    V --> F
  end

  subgraph engine["Engine"]
    C["Claim"]
    S["Split"]
    C --> S
  end

  subgraph outflow["Outflow = burns & desks"]
    PUM["PUM burn"]
    D["DIEM"]
    Desk["Avantis desk"]
    S --> PUM
    S --> D
    S --> Desk
    Desk -->|profit| CR["Creator burn"]
  end

  F --> C
  CR --> V
  PUM --> V

Two burn surfaces

Burn target	Funded by	Worker
PUM (protocol token)	PUM slice of every fee claim	`buyback-engine`
Creator token	Desk profits attributed to that token	`creator-buyback`

Fission on Solana had an analogous split: 30% FISSION burn on every claim, 70% perps with profits returning to the derivative token burn.

pumperp separates protocol upside (PUM tithe on all launches) from creator upside (your desk's profits → your token).

Amplification

Fees enter the desk as USDC collateral × leverage (up to 75× on Avantis). A $10 perp allocation at 75× controls ~$750 notional. A 1% favorable move ≈ $7.50 profit — larger than the fee that funded it.

This is the leveraged amplification marketed on pumperp.com — and the source of liquidation risk when moves go the wrong way.

What resets on a bad trade

Event	Effect on flywheel
Desk liquidation	That token's collateral is lost; new fees fund the next open
Losing desk (no profit)	No creator buyback that cycle; PUM/DIEM legs unaffected
Protocol pause	Registry `pause(token)` removes token from active claim batch

The flywheel does not stop when one desk blows up — unless circuit breakers halt desks globally (see Risk).

Network effect

Every launch pays 5% to PUM regardless of that token's perp performance. More tokens → more aggregate PUM buy pressure — the protocol token benefits from ecosystem growth even when individual creator tokens struggle.

See PUM tokenomics for holder roles, supply mechanics, and what the protocol does not allocate.

Honest limits

Past buybacks do not predict future desk PnL
Creator cash leg (creatorBps) is not part of the flywheel — it's direct USDC to the creator wallet
Engine state is in-memory; extended downtime may delay allocations until the next claim cycle