# Revenue Model

Armor token holders may stake their ARMOR:ETH LP Tokens into arShield which gives them the ability to receive staking rewards in ARMOR and ETH or DAI if the DAO decides to distribute fees. 

## How the Armor protocol accrues fees

* Minting arNFT generates distributable fees on expiry equal to 10% of the premium charged.
* arCore Smart Cover System and arShield sales to end users via pooled arNFT coverage generates distributable fees via 10% profit share.
* arNXM Yield Vault generates distributable fees via 10% profit share.
* Additional ARMOR token are awarded for participation in governance on protocol and system updates, review and approval of claim submissions and review and management of protocol fee structures. 

Staking rewards are proportional to the user's stake in the arShield LP staking pool.