# Network Income and Distribution

In the Kima system we use these parameters: 

* Each transaction pays a **Network Fee** of 0.05% of the transaction value, which is Network Fee Income.
* Penalties are double the Bounties, which means half of the Network Penalty Income is paid to Active Liquidity Providers as Liquidity Bounties.
* Network Fee Income is divided between **Liquidity Providers** (50%), **Kima Validators** (25%), and the **Kima** **Foundation** (25%).
* Network Penalty Income is divided between **Active Liquidity Providers** as bounties (50%), **Kima Validators** (25%), and the **Kima Foundation** (25%).