Fee Architecture Activation for Extended Outages

This section provides a formal technical explanation of how the RUCCO ecosystem can optionally implement its decentralized utility fee logic during extended BNB Chain operations.

IMPORTANT NOTE: This fee mechanism is NOT activated by default during EBP execution. Standard BEP-20 operations provide immediate functionality without revenue generation. Fee activation requires separate DAO governance approval for extended outage scenarios.

1. Token-2022 Dependency and Utility Fee Logic

RUCCO operates atop the open-source RUCCO Protocol, leveraging Solana's native Token-2022 Transfer Fee extension to implement a 6.9% utility fee on all transactions. This mechanism accumulates withheld fees directly at the token level, ensuring that no custom smart contracts, third-party bridges, or external validators are required for fee custody.

The entire withholding and custody logic exists within Solana's audited core infrastructure, enabling non-custodial, protocol-level enforcement of ecosystem coordination.

2. Emergency Conditions and Chain Failover

In the event of extended Solana unavailability (e.g., ≥72 consecutive hours), the RUCCO DAO initiates the Emergency Backup Protocol (EBP). This pre-approved mechanism executes a time-locked, transparent migration of tokenized license balances and DAO governance state to BNB Chain.

Initially, operations continue with standard BEP-20 functionality without fee withholding to ensure immediate operational continuity.

3. Optional RUCCO Fee Replication Architecture on BNB Chain

For extended outages exceeding 30 days, or upon DAO determination, RUCCO can implement equivalent fee logic on BNB Chain through a custom BEP-20 smart contract with base-level withholding.

Activation Requirements:

• DAO governance vote (>66% approval required)

• Formal activation proposal with technical specifications

• Community review period (minimum 7 days)

• Multi-signature committee deployment authorization

Functional Overview:

• Each transfer retains 6.9% of the transacted amount in an internal ledger ("withheldFees" mapping)

• Withheld fees are not immediately redistributed but remain locked within the contract until governance triggers distribution

• A dedicated harvest() function executes DAO-authorized allocations:

  • 5.0% to verified node participants

  • 1.0% to operational and liquidity infrastructure

  • 0.9% to visibility/ambassador initiatives or deflationary burn pools after 24 months

This architecture mirrors Token-2022 behavior: fees are withheld at the token level, not collected via router contracts or external intermediaries.

4. Governance and Distribution Mechanics

Governance validation and eligibility enforcement remain unchanged. Eligibility conditions (e.g., node status, governance participation) are enforced off-chain through cryptographic proof and DAO-signed snapshots.

All distributions operate on:

• Transparent eligibility logic

• Non-custodial DAO-controlled triggers

• Fully auditable harvest events, including public fee balances and allocations

5. Security and Compliance Guarantees

The optional fallback contract:

• Introduces no centralized custody

• Enforces immutable fee logic (when activated)

• Requires DAO multisignature approval for harvest execution

• Maintains compatibility with DAO participation gating and automated distribution thresholds

No bridge infrastructure or wrapped tokens are required. No execution path exists that would modify balances without community authorization.

6. Deactivation and Restoration

Upon Solana network restoration:

• DAO votes to deactivate fee mechanism

• Outstanding withheld fees are processed through final harvest

• Migration back to standard BEP-20 or return to Solana

• Fee architecture can be reactivated in future emergencies if needed

7. Summary

RUCCO's decentralized utility fee model can optionally remain functional, secure, and DAO-governed even during extended Solana outages. When community-approved, a structurally equivalent system can be deployed on BNB Chain, ensuring:

• Base-layer fee accumulation (when activated)

• Transparent and permissionless distribution

• DAO-controlled operations

• Audit-friendly and bridge-free architecture

This optional mechanism guarantees potential continuity of core protocol logic without violating RUCCO's regulatory or decentralization principles, while maintaining operational simplicity for standard emergency scenarios.