Network Fees

There are Three (3) types of fees in the Setheum Network.

Fees are necessary to ensure the security of the network. This fee structure is also like many things - unique to the Setheum.

There are Three (3) types of fees in the Setheum Network and these fees are directed towards the network economy, the fees once collected by the ecosystem are forwarded to certain funds/vaults as beneficiaries of these network fees.

The 3 Types of Fees in Setheum.

1. Transaction Fees

These fees are calculated per bytes as weight of bytes and processing power on the network. Check Transaction Fees for more details on this.

The beneficiaries of these fees are as follows with shares:

  1. Validators = 70%

  2. Charity Fund = 10%

  3. Treasury = 10%

  4. DEX LPs = 5% (LPs of the Utility token ("DNAR" in Setheum, "NEOM" in Neom))

  5. SIF = 5%

2. DEX Exchange (Swap) Fees

These fees are calculated by percentage of the amount swapped on the DEX.

This fee is currently at 0.25%, one of the lowest exchange fee in the World. Lower than Uniswap's .03%.

In Setheum, LPs have a variety of fee structures and economic support pillars that they are involved in such that they earn a chunk of their revenue outside of the swap fees in structures including but not limited to DEX-Incentive tokens with governance and utility, 10% of all network transaction fees just as is they are "lower-level validators", SettMint Fees describes below in the third (3rd) type of fees, SIF Annual support and so on.

This is all unique to Setheum.

The beneficiaries of these fees are as follows with shares:

  1. DEX LPs = 70%

  2. Charity Fund = 10%

  3. Treasury = 10%

  4. SIF = 5%

  5. Economic Incentive Support = 5% (This is to buy back the DEX Incentive token (Investment Council's governance token) to burn it to support DEX Economy and the Setheum Economy as a whole.)

3. SettMint Fees

These fees are calculated by percentage of the amount reserved/unreserved-minted/burnt on the SettMint Protocol.

For more details on SettMint, check SettMint.

This fee divided into two classes:

  1. Reserve/Mint fee: 1%

  2. Unreserve/Burn fee: 2.5%

This is all unique to Setheum. Both of these classes of the same fee go to the same beneficiaries on the network.

The beneficiaries of these fees are as follows with shares:

  1. SettPay Reserve = 40% (cashdrop for the community)

  2. Charity Fund = 30% (charity to support the global under-privileged)

  3. Treasury = 10%

  4. DEX LPs = 10% (LPs of the currency collected (includes all settcurrencies))

  5. SIF = 10%