Use Case

Fee Distribution Model of FractalDEX

One of the unique aspects of FractalDEX is its innovative fee distribution model, designed to benefit token holders and incentivize long-term holding. A portion of the transaction fees collected by FractalDEX is redistributed to Fractal token holders, based on the percentage of the total token supply they own. This approach not only rewards active and loyal participants in the ecosystem but also enhances the token's value proposition.

Fee Structure and Distribution

FractalDEX charges a nominal transaction fee of 1% on all trades conducted through the platform. This fee is utilized to sustain and grow the platform’s ecosystem, part of which is redistributed to Fractal token holders. Here's how the distribution works:

• Total Fee: 1% of every transaction on FractalDEX.

• Distribution to Holders: 0.5% of every transaction is allocated to token holders. This distributed amount is directly proportional to the amount of Fractal tokens each holder possesses.

Example Scenario

To illustrate, consider a user who holds 1% of the total supply of Fractal tokens. Whenever a transaction occurs on FractalDEX, they receive a share of the 0.5% fee that corresponds to their holding percentage. If the total transaction volume for a day on FractalDEX is $1,000,000, the total fees collected would be $10,000. Of this, $5,000 (0.5% of the daily volume) is distributed among token holders. As such, a holder of 1% of the total token supply would receive $50 from that day's transactions.

Benefits of the Fee Distribution Model

• Passive Income: Token holders can earn passive income simply by holding the tokens, without needing to actively trade or use additional resources.

• Encourages Holding: By receiving a portion of the transaction fees, token holders are incentivized to hold onto their tokens to benefit from ongoing transactions on the platform.

• Decentralized Benefit: The distribution model supports a decentralized finance ethos by rewarding a broad base of participants, rather than centralizing profits to the platform itself.

Long-Term Sustainability

This fee distribution model is designed to ensure the long-term sustainability of the FractalDEX ecosystem:

• Economic Incentives: Holders are economically incentivized to support the platform through both market downturns and upswings, contributing to the overall stability and liquidity of the market.

• Community Engagement: The model fosters a strong sense of community and belonging, as all token holders benefit directly from the growth and success of FractalDEX.