Trading Fees & Liquidity As A Service Payments
When users swap tokens on the DEX they will be required to pay a small trading service fee of 0.03%. All trading fees will be paid into the Sweet Protocol's "Candy Store".
SweetDAO's protocol will possess unique incentives for network participants by introducing the liquidity service charging fee.
By providing liquidity services and creating the market, liquidity service providers supply an important service to the Sweet Protocol. For providing this liquidity service and owning the SWEET token, token owners will be able to charge "liquidity provider fees" to the Sweet Protocol for the liquidity services rendered.
On a set schedule the Sweet Protocol will automatically pay these fees to liquidity service providers from the trading fees what were collected in the "Candy Store".
The amount that SWEET token owners can charge the Sweet Protocol will be proportional to how many SWEET tokens they own and have staked. Payments from the Sweet Protocol to token owners will occur as long as there are fees being collected and the "Candy Store" is not empty.
By directly tying the token and economic value that the protocol collects our team hopes to avoid the pump and dump behaviour that happens within the crypto community.
To ensure that SweetDAO becomes a self sufficient decentralised business as quickly as possible the Sweet protocol will start off with 25% of the SWEET Tokens. That means that the Sweet Protocol will own its own tokens.
Since token owners collect fees owed based on how many tokens they own, the Sweet Protocol will be collecting liquidity service fees for itself from the start. These service fees will automatically be added to the Protocol Owned Liquidity to support and increase decentralised liquidity, as well as back the SWEET tokens that are mined by users.