# Introduction of “Fee Vault”

As part of the governance, esUNW-v2 holders also control Fee Vault, whose value is mapped to esUNW-v2, by allowing esUNW-v2 holders to redeem esUNW-v2 (i.e. burn) against the intrinsic value (proportional) of Fee Vault.

The Proposal calls for the Fee Vault to receive 40% of the Fee Distribution, which is then automatically converted into ULP. This re-investment of fee into Liquidity Pool aligns the interests of esUNW-v2 holders with the ULP holders.
