🧾Penalty Fees for Sellers
Transaction Fees and Incentives
Last updated
Transaction Fees and Incentives
Last updated
The Penalty Fees for Sellers are mechanisms implemented within the Tradefi.bot protocol to incentivize holding and discourage frequent selling of $TDFI tokens. Here's how they work and how they benefit the protocol and users:
These fees are applied to transactions involving $TDFI tokens. The 5% penalty fee is imposed on sellers. A portion of these fees goes into the dividend pool, benefiting long-term holders and discouraging frequent trading. Users can offset these fees through biweekly dividends, compounding interest, and participation in the pre-sale.
This way, holders benefit by receiving the 5% fee charged to sellers and speculators of TDFI, which increases its price over time and prevents massive sell-offs. Therefore, holders are rewarded with the 5% penalty redistributed to them from sellers.
5% Penalty Fee for Sellers: Conversely, when a user sells $TDFI tokens, a 5% penalty fee is applied. Similar to the entry fee, a portion of this penalty fee is directed towards the dividend pool, ensuring a continuous influx of funds to support the biweekly dividend payments. The penalty fee serves as a disincentive for short-term speculation and encourages long-term holding among investors.
Deflationary mechanisms of $TDFI help maintain its bullish price, alongside burns that reduce its circulating supply, fostering an upward trend. Acknowledging its high demand, our roadmap aims to cease new $TDFI token issuance entirely, further reducing circulating supply and establishing a fixed maximum supply.
Price Stability: By 5% penalty fee for sellers, the protocol discourages frequent trading and promotes a more stable price environment for $TDFI tokens.
Dividend Pool Growth: The fees collected contribute to the growth of the dividend pool, which is used to distribute biweekly dividends to $TDFI holders. This incentivizes long-term holding and provides passive income opportunities.
Incentive for Holders: Holders benefit from the 5% penalty fee charged to sellers, as it is redistributed to them. This mechanism encourages holders to maintain their positions and rewards them for contributing to the token's stability.
Community Support: The fee structure aligns incentives within the community, fostering a supportive environment where holders are rewarded for their commitment and discouraging speculative trading behavior.
Economic Sustainability: By redistributing fees to holders, the protocol ensures a continuous flow of rewards and strengthens the economic foundation of $TDFI, making it an attractive investment option.
By redistributing a portion of the entry and penalty fees to $TDFI holders through biweekly dividends, the protocol rewards those who choose to hold their tokens. This redistribution mechanism not only incentivizes holding but also enables users to benefit from compounding interest over time. Additionally, by penalizing sellers, the protocol aims to stabilize the token price and foster a stronger sense of community ownership among holders.
The Entry Fee and Penalty Fees for Sellers play a crucial role in maintaining the stability and sustainability of the Tradefi.bot ecosystem. They encourage responsible token management practices, reward long-term holders, and contribute to the overall value proposition of $TDFI tokens.
