Name: MultiVariable Fee (MVF) Proposal
Scope: To create a control system for the fees RenVM (and accompanying UI, to enable dark node operators to visualize and vote on current pricing of fees) intends to charge its customers, and being able to control these fees based on: Crypto Asset being bridged, size of the transaction, direction (burn/mint), there could also be variable rates for each chain (fee income designed to maximize based on the demand of network throughput on-chain). MultiVariable Fee Control System for DN operators could also determine preferences of OFT claiming and 1:1 swapping for DN Income.
Objective: With the goal to maximize market penetration and network income. I foresee that there is an opportunity we should get ahead of. The reality of dealing with crypto business is still in the early days, there is a large variety of new blockchain industries that are creating value and yield in today’s DEFI boom, but who knows where the next innovation for growth might be or which chain. Having a Multi Variable Fee Control System would enable DN operators to vote, visualize network traffic, and maximize income, or maximize incentives to further growth.
Current Fee System
RenVM has established three fees (Minting / Burning, Continuous, Underlying). As of this RFC, the current price level is 0.1% Mint / 0.1% Burn), 0 Continuous, Underlying is passed on to customer, non-discounted). There have been no votes on whether or not these fees are set at an appropriate level, as we are still on RenVM SubZero - Epoch 4.
renBTC, renBCH, renZEC, should each have their own current fee system rate controls/voting panel. Each can adjust their mint by 0.1% up or down lower limiting at 0. The ability for the RenVM network to capture more market share and maximize income lies in the ability to control fees and compete with the future competition, crypto market inflows of capital have been volatile historically, the system and governance needs to be able to increase additional income when the volume is growing at a growing rate, and if growth slows adjust those rates lower to capture more market share by lowering fees to incentive business.
renBTC - 0.1% Mint | 0.2% Burn | .008% Continuous | Underlying discount 0%
renBCH - 0.4% Mint | 0.4% Burn | 0% Continuous | Underlying discount 0%
renZEC - 0.2% Mint | 0.2% Burn | 0% Continuous | Underlying discount 0%
renBTC - 0.6% Mint | 0.6% Burn | .008% Continuous | Underlying discount 0%
renBCH - 0.4% Mint | 0.4% Burn | .008% Continuous | Underlying discount 0%
renZEC - 0.2% Mint | 0.2% Burn | .008% Continuous | Underlying discount 0%
Size Discounts Rate (whale business is the best business)
10 BTC | 0.4% - standard rate
100 BTC | 0.38%
1,000 BTC | 0.36%
10,000 BTC | 0.2%
100,000 BTC | 0.1%
What is Needed
Developer Time, UI Designer Time, Update to CLI, DN Update, Voting Approval