Tokenomics & Fees

Feeder Finance Tokenomics Diagram

As a platform, we've designed our products wrapped around the concept of creating utilities and demand for FEED tokens. Which ultimately brings benefits to the Feeder Finance community. sFEED, staked FEED, also plays a crucial role in Feeder Finance's Tokenomics.

Treasury Wallet: Funds for development, marketing, and reserve purposes

Staking Contract

Current Distribution Share of Farming: 30%

  • Does not incur fees

  • Rewards auto-compound

  • Rewards get distributed approximately every 2 hours

  • Additional rewards from farming withdrawal fees - LP broken down, BNB buy back of FEED, and FEED distributed once a week randomly

Farming Contract

Current Distribution Share of Farming: 70%

Harvest Fees: 7%

Destination: Developer and Insurance wallets

  • 5% -> Developer wallet for on-going development and associated costs

  • 2% -> Insurance wallet which will be used for reserves

Withdrawal Fee: 5%

Destination: Fee Collector to Buyback and Distribute

  • 5% -> Distribution to FEED Holders after market buying of FEED

Farming Fee Rationale

Why the Withdrawal fee goes back to the community?

Withdrawals without going back into the staking pool signify investor exit. While this is natural the fee makes sure an exit does not come without costs. This cost goes back directly to the community who are sticking with the project and holding strong. Nonetheless, if farmed long enough, the rewards would have paid for such fee many times over.

Why Harvest fee is distributed to Developer and Insurance wallets?

Simply because both needs to be capitalized to get the project to its destination, and beyond; to create value and comfort for all stakeholders. We are and will remain transparent about this. The reason it's structured in a way that this is coming off the harvest rather than the withdrawal because we'd rather not touch users' initial capital. The APY is minted and does hold value. Still, this new value was, in a sense, created by the dev and marketing efforts. We think it is fair that a portion is deducted towards continuous development towards more value of the project; and the underlying token.

Vault Contract

Entry Fees: 0.1% of deposits

Destination: Governance Treasury wallet

Once governance is transferred to the community after core products launches, the Governance Treasury wallet will be managed by the governance body.‌

  • Objective:

    • To create DEMAND for our native token that correlates with usage of the platform

    • To create UTILITY that drives part of FEED intrinsic value

Exit Fees: 0.1% of withdrawal

Destination: Developer wallet

  • Objective:

    • To pay for GAS FEES that the smart contracts need to run on

    • To support DEVELOPMENT and MAINTENANCE of the platform

    • To support any other INITIATIVES for future products that may require advisors or partnerships

Profit Sharing: 5.0% of profits

Destination: Fee Collector to Buyback and Distribute, and Developer wallet

  • 3.5% -> Distribution to FEED Holders after market buying of FEED

  • 1.5% -> Developer Wallet for marketing and development incentives

Objectives:

  • Staking Pool: As the products become more popular, FEED stakers benefit from CASHFLOWS generated by usage of the platform; further driving value of the native token

  • Developer Wallet: The main purpose of the developer wallet is to drive DEVELOPMENT, MARKETING and act as a SAFETY net in extreme events beyond Insurance.

Summary

FEED native token has three main factors driving value:

  1. DEMAND from the usage of the platform through liquidity pool buying

  2. UTILITY in a sense that the native token is required (effectively as profit sharing and buyback into entry/exit fee) for usage of the platform

  3. CASHFLOWS through the distribution of profit sharing

Note

Typically, Vaults, which are the target products of Feeds, also charge specific fees (entry, performance, exit, and so on). This factor is considered in the model that drives allocation/rebalancing decisions but should be noted nonetheless. Essentially users are paying two layers of fees. The rationale for this is that it costs to take the work off any investors' hands; there are no free lunches. Automation and diversification have valuable utility. While an investor actively managing their portfolio may (or may not) generate greater net APY, automation does provide value to others that look for ways to make diversification and automation simple and convenient. These investors are willing to sacrifice a small portion of APY for it.