# Royalties

From the beginning of Udder Chaos, we have had a goal of not being reliant on royalties. That said, royalties are a very beneficial additional source of revenue. After putting royalties to vote, holders voted on a declining royalty structure and staking enforced royalties. 

<figure><img src="https://393559704-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBL71U3YMe9sKRkX2VCPW%2Fuploads%2FjNnHIi6WIAiwcEjzMjDN%2Fimage.png?alt=media&#x26;token=529db6bb-2128-404c-bc00-ed60f82f3499" alt=""><figcaption></figcaption></figure>

<figure><img src="https://393559704-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FBL71U3YMe9sKRkX2VCPW%2Fuploads%2FtyfIKkStirOcm2Etspsz%2Fimage.png?alt=media&#x26;token=4283b2c4-87dd-4e70-b76b-d3d43827da97" alt=""><figcaption></figcaption></figure>

#### Where do royalties go?

* 50% - Validator Self-Stake
* 25% - Increasing Token Value
* 25% - Team (Subscriptions, Salaries, etc)

100% of royalties are being reinvested into the project. Even the 25% that goes to the team is investing in the project. The team portion covers discord nitro subscriptions, server boosts, discord bots, development costs, pay for dev contracts, moderators and a salary for the founders. This enables the team to work full time on the project. While the value brought in is currently quite low because of a volume, as the project builds momentum, the team portion of royalties will allow us to expand the team and continue scaling up.\
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The 50% validator portion, increases our validator self-stake which creates a consistent revenue stream for the project. More details can be found in [Validator Funding](https://docs.udderchaos.io/project/udder-chaos-validator/validator-funding).\
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The remaining 25% that goes towards increasing token value is invested into many different utilities. For full details check out [$MILK Tokenomics](https://docs.udderchaos.io/project/usdmilk-tokenomics) and all of the sub-categories.