0.05% is distributed to stKDX holder. It goes to a pool called KDX Staking Pool(stKDX). The KDX Staking Pool contract collects the fees from all the pools, and when the reward distribution command is called, it then sells all the fees turning them into KDX token (via KAIDEX Swap). That new KDX is divided up among the users in the stKDX pool. When those users withdraw their stKDX it will be worth more KDX than when they put in from the distribution.