Fee System

Fee Collection and Allocation

AxyBit's fee system is designed to be transparent, efficient, and aligned with the long-term growth of the ecosystem.

• Batch Processing: To optimize for efficiency and minimize on-chain transactions, fees will be accumulated and settled in batches every 100 trades. This reduces the computational load and ensures that the fee system is scalable.

• Revenue Allocation: The fees collected from trading activities are meticulously allocated to support the platform's growth and benefit its participants.

• 80% → Protocol Treasury: The majority of the revenue is directed to the Protocol Treasury. This fund is used for a variety of purposes, including continued development, security audits, marketing, community initiatives, and strategic partnerships. This ensures that the platform has the resources it needs to grow and innovate.

• 20% → Liquidity Provision: A portion of the fees is directed back to liquidity providers. This acts as an additional incentive for users to provide liquidity, ensuring that our markets remain deep and efficient. This model creates a virtuous cycle where trading volume generates fees, which in turn attracts more liquidity.

Transparency

All fee distributions are tracked on-chain and are verifiable by anyone. This provides a high degree of transparency and ensures that the community can audit the fee system and its allocation. We believe that this level of transparency is essential for building trust in a decentralized ecosystem.