*THIS PROPOSAL HAS BEEN POSTPONED*
As the NFT DEX nears its beta launch, the time has come to solidify its fee structure. Because $NFT token holders stand to benefit from the fee revenue accrued by the DEX, it is important that its fee structure is designed to maximize revenue generation in an increasingly competitive NFT space and that it be approved by the community of $NFT holders.
The beta launch of the NFT DEX will have two sets of features:
1) ERC 721 <-> ERC 721 swaps 2) ERC 721 <-> ERC 20 swaps
Because there is not yet a mechanism for establishing a value basis for ERC 721 <-> ERC 721 swaps, we feel it is sensible for these transactions to incur a flat rate fee which, of course, could be restructured as ETH valuations fluctuate over time.
ERC 721 <-> ERC 20 swaps, on the other hand, have an obvious value basis and can thus incur a value-based fee.
*It's worth noting that, among other NFT platforms, the lowest fee charged for secondary market transactions is 2.5% (charged to seller), and that fees are most often at 3% charged to both buyer and seller. We propose that the NFT DEX charge a fee to the buyer only so as to incentivize owners of the most desirable NFTs to become sellers on our DEX. We also propose that the seller be given the option to pay the fee for the buyer.
FEE STRUCTURE PROPOSALS
ERC 721 <-> ERC 721 Flat Rate Fee:
A) .0005 ETH B) .001 ETH C) .005 ETH D) .01 ETH E) Mirror Gas Fee
ERC 721 <-> ERC 20 Value-Based Fee:
1) .3% 2) .5% 3) 1% 4) 1.5% 5) 2.5%
We feel that the fee structure proposed herein is most likely to make our NFT DEX a major contender within the NFT space. The specifics of that fee structure, however, are up to the community of $NFT holders. It is important that the specifics of the fees are low enough to be competitive in the NFT space and attract adequate volume to the DEX, yet high enough to generate substantial fee revenue for $NFT token holders.
We most certainly welcome alternative fee structure proposals from the community of $NFT holders if you feel we've overlooked something or that you have a better vision for the community to consider.
Those who hold 100+ $NFT tokens can find and vote on this proposal on our off-chain governance page until February 21, 2021 @ 5pm EST:
*This proposal was accidentally submitted to our governance page twice. When voting please be sure you are voting on the version of the proposal linked to above in this newsletter.*
It is VERY important that we get as much participation from $NFT holders on this proposal as possible as its outcome will determine how the DEX ultimately positions itself within the NFT space.
~The NFT Protocol Team