Set a 0.5 ADA fee per transaction in the DEX that should go for the DAO. Periodically the ADA collected could be used to ZAP in ADA/MIN. That will help MIN valuation and will increase liquidity in the dex.
5 Likes
IMO, it’s a bad idea. the way to increase value is by adding value to the users, not through taxation
15 Likes
I agree. Increasing fees probably isn’t that way to go. Having increased traffic by adding user value will likely increase the total value (monetarily and nonmonetary) without alienating the user base. Looks at traditional stock brokers they all went the way of no fees and see high fund inflow. People go where it is cheapest to buy and sell.
7 Likes
May be the way to go is through splitting the batchers fee and destinate part to help MIN valuation. People go where there is cheapest to buy and sell but they also go where they have enough liquidity. There is no value in a best low cost performing app with no liquidity
i prefer restaurant model as well for software… higher volume lower fees for revenue.
what the team could do is impose a load fee and surrender charge.
no in’sy out’sy. or if you jump in an out more than 2x per month wallet is blocked from that pool.
I dont agree with this - just posting options in case the team actually does
“PancakeSwap handles exchange fees and has a daily volume of 100 million dollars. It’s important to have liquidity to avoid large price slippages or price impact. Although you may save on fees, you may end up paying 19% in slippage due to lack of liquidity, allowing others to take advantage of the opportunity of arbitrage. A DEX should not just be about farming if the MIN coin loses value with inflation. If the exchange is with stable coins, like DAI-USDT, then it would be illogical to charge a 0.5% fee. However, if you want to trade ADA-MIN or iUSD, you must assume some loss to ensure there are liquidity providers, as they are the first to be affected by impermanent loss. If the community approves it, I suggest allowing the community to vote between fees of 0.35%, 0.40%, and 0.50%. Participants from other DEXs may migrate to MIN for incentives. Charging more than 0.5%, such as 0.6%, would be too high and I do not recommend it.”
“Instead of proposing fixed changes to fees from 0.3% to 0.5%, I want to propose something innovative: a dynamic and changing fee system based on the liquidity and volume of each pool. For example, if a pool has low liquidity and low volume, fees of 0.5% could be charged. However, if the volume is high and the liquidity is good, fees of 0.3% could be charged. If the liquidity is high but the volume is very low, fees would increase to a maximum of 0.5%, decided by a smart contract. This would further boost liquidity on the protocol. For example, if the daily volume doesn’t reach 5% of total liquidity, fees would increase, but if the volume is above 5%, fees would decrease. A minimum liquidity could also be set to charge low fees, for example, 100,000 ADA. As liquidity increases, fees would decrease to 0.3%.”