> For the complete documentation index, see [llms.txt](https://docs.voltage.finance/voltage/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.voltage.finance/voltage/the-platform/liquidity-pools/voltage-v4.md).

# Voltage v4

### Voltage v4: Advanced Fee Management and Governance

Voltage v4 is built on top of the Algebra framework, preserving the capital efficiency of Concentrated Liquidity while introducing a new structure for managing protocol revenue and tokenomics.

#### Core Design:

* Algebra automatically splits trading fees.
* **88%** of fees go directly to LPs.
* **12%** go to an on-chain [**Community Vault**](https://explorer.fuse.io/address/0x410698C399A0DB5D9dFbE31f22E53b479DF0Ee7E) managed by the protocol.
* Of that 12%:
  * **3%** goes to Algebra (protocol partner).
  * **4.5%** is burned, reducing circulating VOLT.
  * **4.5%** is distributed to veVOLT holders.

This mechanism ensures that all fees are either returned to stakeholders or used to increase long-term value through deflation. The protocol retains no treasury revenue from these fees.

#### Long-Term Burn Program:

Voltage v4 introduces a continuous burn mechanism:

* The program is designed to build long-term trust and visibility.
* Burns are conducted monthly based on trading activity.
* Goal: Burn 45% of the protocol-held VOLT supply (1.72B).

#### Governance-Driven Incentives:

With the introduction of **Gauges** and **Bribes**, Voltage v4 transitions away from centralized farming to a decentralized reward allocation model, empowering veVOLT holders to vote on where incentives go and enabling external projects to influence votes.

For more on these systems:

* Visit the [Gauges Voting Page](https://app.gitbook.com/o/nhQEDF9PRGxLecABjn6d/s/wttAR2Fr2U1I5o5f6hJf/~/changes/149/the-platform/yield-farming/gauges-voting)
* Visit the [Bribes System Page](https://app.gitbook.com/o/nhQEDF9PRGxLecABjn6d/s/wttAR2Fr2U1I5o5f6hJf/~/changes/149/the-platform/yield-farming/bribes)

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