No trading fees update 5 May 2020

What are the details on the no trading fees update today?

Some members in the Telegram group were wondering since this is part of how nodes currently earn.

3 Likes

Good question! Liquidity providers also earn fees.

2 Likes

hey - thanks for the question.

node owners don’t earn trading fees, they earn transaction fees (on top of block rewards). the removal of trading fees will not affect their earnings.

@andrey will be able to share more about plans for the Incognito DEX going forward.

4 Likes

Were those trading fees going to pdex liquidity pool stakers before? Does this mean the only source of interest being provided to the pdex liquidity pool is coming from the DAO Percentage earned from each block?

Re plans for the Incognito DEX, it may be helpful to refer to this proposal thread:

Essentially, we are trying to build a different type of exchange, and to do that, we need to experiment with different structures. If you check the proposal above, you will see that we will try to onboard more projects this month to list their tokens on the Incognito DEX. This brings them several advantages in comparison to centralized exchanges or other DEXs.

Zero trading fees is one of the options. There is also discussion around the idea of allowing liquidity providers to vote on trading fees for their pools. As always, feel free to open up a wider discussion on this. More opinions, more ideas, are always better.

For the past period yes. Trading fees went to liquidity providers, but those were significantly low. For the current liquidity rewards initiative which pays interest on certain pairs, yes, those are paid out of the DAO fund.

4 Likes

Are there any issues with this update? Some of us are having deposits not show up.