# How it works

> CLOUD's mechanics in full: buy fees paid in $NET split 80/20 into the CLOUD Community Vault and the original receiver; sell fees paid in $CLOUD burned 100%. The Vault only grows, the supply only shrinks.

Canonical: https://cloudonrh.com/docs/how-it-works/
$CLOUD trades against tokenized $NET through LONG on Robinhood Chain, using Uniswap v4. Every trade routes fees, and where those fees go depends on which way you are trading.

## On buys: fees paid in $NET

A buyer spends $NET to receive $CLOUD, so the fee on a buy is collected in $NET and split:

| Share | Destination | What happens |
|---|---|---|
| 80% | **CLOUD Community Vault** | Real stock tokens, held forever |
| 20% | Original receiver | Passed through |

The Vault is a growing pile of tokenized Cloudflare stock funded by buy volume. Nothing in the design sells it back to the market.

## On sells: fees paid in $CLOUD

A seller spends $CLOUD to receive $NET, so the fee on a sell is collected in $CLOUD:

| Share | Destination | What happens |
|---|---|---|
| 100% | **Burned** | Supply drops, permanently. Nothing is recycled. |

There is no vault leg on sells. Every unit of $CLOUD collected as a sell fee is destroyed.

## Net effect

- The Vault only grows.
- The $CLOUD supply only shrinks.
- Volume is the engine. Buys feed the Vault, sells shrink the float, and both happen automatically on every trade.

## Where this is enforced

Fee routing happens at the pool level through Uniswap v4's hook system rather than through a team wallet doing manual buybacks. That is what makes the mechanics predictable: the split is the same on trade one and trade one million.

## Worked example

Amounts on the website's diagram are illustrative. For a buy with a 0.30 $NET fee: 0.24 $NET goes to the Vault and 0.06 $NET to the original receiver. For a sell with an 8,100 $CLOUD fee: all 8,100 $CLOUD are burned.

## What the Vault is not

The Vault is not a treasury holders can claim from. It exists to hold stock tokens on the community's behalf and to make the growth of the pair legible. Holders cannot redeem assets from it.

## Related

- [Stock/token pairing explained](/docs/stock-token-pairing/)
- [Contracts and links](/docs/contracts/)
- [FAQ](/docs/faq/)

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$CLOUD is a memecoin paired with tokenized $NET. It does not represent Cloudflare equity, and holders cannot redeem assets from the Vault. Not an investment product. CLOUD is not affiliated with Cloudflare, Inc., Robinhood, LONG, or Uniswap.