# Rewards Distribution

The core promise of Investing Yachts is simple: **real yachts, real charters, real profits directed to token holders.**

This section explains how **net charter profits** flow from the fleet back to $YATE holders through a transparent, rules-based system built around **lock-up vaults**.

### From Charter Revenue to Profit Pool <a href="#from-charter-revenue-to-profit-pool" id="from-charter-revenue-to-profit-pool"></a>

Each yacht in the fleet generates **gross charter revenue** across the year (Mediterranean, Caribbean and other key routes). From this, the project deducts:

* Operating costs (crew, fuel, insurance, maintenance, port fees, etc.)
* Management and brokerage fees
* Tax, regulatory and administrative expenses

What remains is the **Annual Net Charter Profit**. This is the base that powers the whole distribution system.

A fixed structure then allocates this profit into:

* **Up to 65%** → Delivered to $YATE holders who lock tokens in the protocol’s vaults.
* **5%** → Treasury Reserve
* **10%** → Buyback & Burn program
* **20%** → Company Operations (Investing Yachts)
* **0–20%** → Community Incentives (depending on how much is actually claimed by vaults)

### Lock-Up Vaults: How Holders Earn <a href="#lock-up-vaults-how-holders-earn" id="lock-up-vaults-how-holders-earn"></a>

To receive a share of charter profits, token holders **lock their $YATE** into on-platform vaults for fixed periods:

* **1-month vault** – entitled to **up to 45%** of the total profit pool
* **3-month vault** – entitled to **up to 50%**
* **6-month vault** – entitled to **up to 55%**
* **12-month vault** – entitled to **65%**

Key ideas:

* The **longer you lock**, the **larger the share** of the profit pool your tier can access.
* Within each vault, profits are distributed **pro-rata** based on how many tokens each investor has locked in that tier.
* If a tier is underused (for example, few people use the 12-month vault), not all of its maximum allocation may be needed – the **leftover portion can flow into Community Incentives**, further strengthening ecosystem growth.

This creates a clear, game-theoretic alignment:

> **Shorter locks → more flexibility, lower rewards**&#x20;
>
> **Longer locks → less flexibility, higher rewards**

### **What Happens To The Remaining Profits** <a href="#what-happens-to-the-remaining-profits" id="what-happens-to-the-remaining-profits"></a>

After directing up to 65% of net charter profits to the vaults rewards, the rest of the pool is used to strengthen the project and the token over time:

* **5% Treasury Reserve**
  * Provides strategic buffer and long-term stability (legal, compliance, unforeseen events).
* **10% Buyback & Burn**
  * Used to **repurchase $YATE on the open market** and permanently burn those tokens.
  * Over time, this **reduces circulating supply**, supporting price dynamics as the fleet and its revenues grow.
* **20% Company Operations**
  * Funds the ongoing operation and scaling of Investing Yachts: team, technology, marketing, yacht acquisition pipeline, and partnerships.
* **0–20% Community Incentives**
  * Any unused allocation from the vault tiers is redirected here.
  * Fuels a wide range of initiatives: loyalty rewards, referral programs, ecosystem campaigns, and strategic incentives that help grow the community and usage.

This structure ensures that **every dollar of profit works in multiple ways**: rewarding committed holders, strengthening the token, growing the brand, and expanding the ecosystem.

### $YATE Holders Benefits And Alignments <a href="#investors-benefits-and-alignments" id="investors-benefits-and-alignments"></a>

The charter profit distribution model is designed to create **hard alignment** between token holders, the company, and the underlying assets:

* **Aligned incentives**
  * If the fleet performs well and profits grow, **holders who lock for longer capture a larger slice of a larger pie**.
* **Market stability**
  * Lock-ups reduce circulating supply and short-term sell pressure, supporting healthier price dynamics.
* **Deflationary pressure**
  * The buyback & burn program uses a fixed slice of real profits to **permanently remove tokens from circulation**.
* **Community growth**
  * Underused capacity in the vaults doesn’t go to waste – it is recycled into **Community Incentives** that help attract new users and reward participation.

Put simply:

> **The more successful the charter operation becomes, the more powerful the compounding effect for committed $YATE holders.**

This is how Investing Yachts turns the charter business from a closed, illiquid game for a few into a **transparent, programmable income engine** for a global community of participants.


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