Fee Structure
The $IONs token has been designed to provide holders utility and should not be used as a speculative tool. With this in mind, we’ve designed several incentive systems to support the use of $IONs within the Lithium ecosystem. As we were fortunate to have numerous early adopters who helped us sculpt and develop the Lithium model, the $IONs structure is in place to reward these early adopters.
Fee Structure
The only sustainable way to deliver incentive rewards is by charging fees that generate revenue. Some ecosystems try to avoid this by creating massive VC-backed reward pools at inception and then paying adopters from this reward pool. This approach is not sustainable — rewards that are not generated from real business activity.
A reliable way to generate rewards is via trading fees. Tokens, if not staked, are constantly bought and sold and therefore can represent a reliable mechanism to reward those who hold, while disincentivizing selling. Our $IONs token will charge variable buying and selling fees (more details in below section). All revenue generated from trading will then be distributed as follows:
Platform Fees
Currently, the $IONs token also generates revenue through instant staking fees on our platform: If someone wishes to participate in raises held by Lithium without staking their tokens, they may use the “instant” staking option at a 5% fee.
We will be generating revenue through a different mechanism later in Q2. We believe what we have in mind will be a game-changer, and will reveal it in due course.
Charging Cycles
These are certain periods of time, that reward whoever is staked for the entire duration of the period. The idea behind epochs is—once again—encouraging holding and rewarding those who most positively engage with the ecosystem.
The duration of Charging Cycles will be based on $IONs transaction volume. At the start of each cycle, 3% of Lithium’s Market Cap will be set as the trading volume required to reach the end of the cycle.
At the end of a cycle, Supercharge Rewards will be distributed. T
The sell tax is highest at the beginning of a Charging Cycle and will gradually reduce throughout the cycle, from 12% to 8%.
At the beginning of every Charging Cycle, there will be a 24 hour ‘Battery Change’ period. In this period there will be 0% buy tax.
After 24 hours, buy tax will remain constant at 8% throughout the Charging Cycle.
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