Protocol Fee

PROTOCOL FEE

The Solid Protocol introduces the dynamic trading fee (max capped at 20%), traders pay the dynamic trading fee based on a formula (TF in implementation) on all trades, if fee On is set to True, 20% from the trading fee would be locked for team_address, hence, the reward pool would only receive 80% from the trading fee instead of 100%.

k_reward_accumulated(κ) is used to store the distribution of the trading fee across the reward pool, given the amount of trading fee as Ρ and the amount of staked balance as φ, whenever a sell occurs, k_reward_accumated is updated as the following:

$$κ = κ + Ρ/φ$$

The total collected fee(T) of individuals could be calculated based on the following given and for the time of the transaction and last time fees were collected respectively:

$$T = (κ_(t_1 )- κ_(t_2 ))*φ$$

All fees are locked in the reward pool, those who staked their Solid-token would then can get the token in the reward pool according to their pool share by claiming.

If fee On is turned on, 20% of all trading fee would be allocated to the developer team of this project. Reward fee would not be sent on every transaction and must be claimed by the developer team as an intent to minimize computational cost on each transaction.