> ## Documentation Index > Fetch the complete documentation index at: https://docs.archr.win/llms.txt > Use this file to discover all available pages before exploring further. # ARCHR fee-flywheel > How every Archr coin's locked-LP swap fees turn into a pro-rata airdrop to the top-50 ARCHR holders once a coin's fees have been recycled into 1% of its own supply. Every launched coin's LP is [permanently locked](/reference/risks#liquidity-is-locked-revenue-is-fees), so the only value that can ever leave the position is the **1% swap fees** on trading. Those fees would normally be a slow drip out to whoever owns the launcher. On Archr they feed a recurring airdrop program that pays the top-50 [ARCHR](/network/contracts#archr-token) holders in the coin's own supply. ## What ARCHR is ARCHR is the [Archr platform token](/network/contracts#archr-token): a plain fixed-supply ERC-20 on 4663 with a single-sided V3 pool against WETH. Holding ARCHR is the sole eligibility condition for the fee-flywheel airdrops described below. ## The mechanic, end-to-end For each launched coin, the program executes this loop: 1. **Collect.** Accrued swap fees (WETH + coin) on each locked LP are periodically swept to the [distributor](/network/contracts#archr-fee-flywheel-distributor). Because the position is locked, the sweep cannot decrease liquidity; only the fee bucket moves. 2. **Swap the WETH leg.** The distributor swaps the WETH it just received into more of the same coin, using the coin's own V3 pool. That converts the entire fee bundle into a stack of the coin itself. 3. **Wait for the threshold.** Once the distributor's balance of a given coin reaches **1% of the coin's fixed supply, or 10,000,000 tokens** (against the 1,000,000,000 supply every Archr coin has), that coin is eligible for an airdrop. 4. **Snapshot the top-50 ARCHR holders.** At the trigger, the on-chain ARCHR holder set is ranked by balance; the top 50 by balance are selected. The [ARCHR/WETH pool](/network/contracts#archr-weth-v3-pool) is excluded (it holds unsold single-sided liquidity, not a real balance). 5. **Airdrop pro-rata.** The 10,000,000 tokens are split among the top 50 in proportion to their ARCHR balance and sent in 50 transfers. The distributor's balance of that coin drops to zero, and the cycle for that coin restarts. Because the trigger is a per-coin threshold that resets after each airdrop, a coin that keeps accumulating fees can fire multiple airdrops over its life. Every time its fee bucket recycles into another 10M of the coin, the top-50 gets another slice. ## Why it exists Locked LP is the load-bearing rug-proof guarantee on Archr, but by construction it also traps value. A locked position is worth nothing to anyone unless the fees get moved somewhere. The flywheel is the pipe. Instead of the launcher owner sweeping every coin's fees to their own address, the fees are systematically converted back into the coin and returned to the ARCHR holders who make the platform work. ## What counts as an ARCHR holder Every regular EOA or contract that holds ARCHR at the snapshot block is eligible, ranked by balance. The **ARCHR / WETH V3 pool** address is the only exclusion; its balance is unsold single-sided liquidity, not a real holder, and a slice sent there would be trapped. Everyone else (retail wallets, contracts, market makers) is treated the same and ranked purely by balance. ## What holders receive An airdrop is always in the **coin that triggered it**, not in ARCHR itself. If SNOO's fees cross the threshold, the top-50 ARCHR holders receive a slice of SNOO. If a different coin crosses next, the top-50 (as of that snapshot block) receive a slice of that coin. You end up with a growing portfolio of Archr-launched coins over time, weighted toward the ones that trade the most (because they accrue fees the fastest). ## Pace and cadence Airdrops are not scheduled to a calendar. A busy coin can fire multiple airdrops in a week; a quiet coin may never reach the threshold at all. ## What could change The threshold, top-N size, and eligibility rules are program parameters, not on-chain governance. Current settings: top 50 holders, threshold 10,000,000 tokens (1% of the 1B supply per coin), snapshot at trigger block. Documented parameter changes will be reflected on this page. See [risks → program risk](/reference/risks#program-risk) for how to think about that as a holder. ## Where to see it happen Each airdrop is 50 on-chain transfers from the distributor to a snapshot of 50 wallets, all in the same block. To watch them: * The distributor address is public; see [Contracts → distributor](/network/contracts#archr-fee-flywheel-distributor). * Any Blockscout query for the distributor's outgoing transfers of a given coin shows the airdrop rows for that coin. * Follow [@archrdeploy](https://x.com/archrdeploy) for airdrop announcements.