Transaction Fees
Understanding the fee structure for using the Network and how fees support the ecosystem
Overview
The Network operates on a transparent fee structure designed to sustain operations, incentivize participation, and create value for all users. There are three main types of fees that apply to different activities.
Types of Transaction Fees
1. Gas Fees
Purpose: Facilitate transactions on the Network Amount: Usually a few dollars per transaction Applied to: All Network operations
Gas fees cover the computational costs of processing transactions on the Network, including:
- Creating personal tokens
- Processing fundraising rounds
- Executing investments
- Distributing dividends
- Recording ownership changes
Gas fees are minimal and designed to cover basic operational costs rather than generate revenue.
2. Secondary Sales Fee
Purpose: Provide ongoing revenue for token owners and the Network Amount: 2% of transaction value Applied to: All secondary market transactions
The 2% fee is automatically split as follows:
- 1.5% goes to the token owner
- 0.5% goes to the Network
Example Calculation
If an investor sells shares worth $100,000:
- Total fee: $2,000 (2%)
- Token owner receives: $1,500 (1.5%)
- Network receives: $500 (0.5%)
- Seller receives: $98,000
This fee structure incentivizes token owners to approve secondary sales, creating liquidity for investors while generating ongoing revenue.
3. Equity Fee
Purpose: Give the Network ownership in all personal tokens Amount: 0.1% equity stake Applied to: Each fundraising round Recipient: Network Token
For every fundraising round, a small equity stake is automatically granted to the Network Token, creating an index-like ownership across all personal tokens.
How It Works
- You complete a fundraising round selling 1 million shares
- The Network automatically receives an additional 1,000 shares (0.1%)
- Total new shares: 1,001,000
- Network’s ownership percentage grows with each round
Fee Structure Benefits
For Token Owners
Secondary Sales Revenue:
- Earn 1.5% on every secondary transaction
- Ongoing revenue stream as your token gains popularity
- Incentive to maintain high token value
Network Investment:
- Network Token ownership aligns Network interests with your success
- Network has incentive to support your growth
- Creates ecosystem-wide alignment
For Investors
Liquidity Incentives:
- Token owners benefit from approving secondary sales
- Creates more liquid markets for personal tokens
- Easier exit opportunities when needed
Network Stability:
- Fees fund Network operations and development
- Ensures platform sustainability and growth
- Continuous improvement of features and tools
For the Network
Sustainable Operations:
- Gas fees cover basic operational costs
- Secondary sales fees fund development and maintenance
- Equity fees create ownership in ecosystem growth
Aligned Incentives:
- Network benefits when personal tokens succeed
- Motivated to provide excellent tools and services
- Long-term sustainability model
Network Token Economics
The Network Token accumulates value through multiple mechanisms:
Equity Accumulation
- 0.1% equity from every fundraising round
- Compound growth as successful tokens raise multiple rounds
- Diversified portfolio across all Network participants
Fee Revenue
- 0.5% of secondary sales provides ongoing revenue
- Distributed to shareholders as dividends (30%)
- Reinvested in Network for growth (70%)
Example Network Token Growth
Consider the Network’s position after significant activity:
Initial Activity
100 personal tokens each complete 1 fundraising round Network receives 0.1% equity in each token
Secondary Sales
50k in fees 35k reinvested in Network operations
Follow-on Rounds
50 tokens complete second rounds at higher valuations Network’s equity stakes become more valuable
Compounding Returns
Network Token represents diversified ownership Benefits from success across entire ecosystem
Fee Transparency
Real-time Tracking
The Network provides complete transparency about fees:
- Fee calculations shown before transaction confirmation
- Historical fee data available for all users
- Network revenue reports published regularly
- Fee distribution tracking for Network Token holders
No Hidden Costs
All fees are:
- Clearly disclosed before transactions
- Automatically calculated with no surprises
- Standardized across all users
- Auditable through Network records
There are no hidden fees or additional charges beyond the three fee types described above.
Fee Optimization Strategies
For Frequent Traders
- Batch transactions when possible to minimize gas fees
- Time secondary sales to maximize net proceeds
- Consider fee impact when setting sale prices
- Monitor Network Token for potential investment
For Token Owners
- Encourage secondary trading to generate royalty revenue
- Maintain token value to increase royalty amounts
- Build active shareholder base to increase trading volume
- Communicate value to support higher sale prices
For Long-term Investors
- Factor fees into investment return calculations
- Hold for longer periods to amortize transaction costs
- Consider Network Token as a way to benefit from ecosystem growth
- Participate in pro rata to minimize dilution from equity fees
Future Fee Considerations
Potential Adjustments
As the Network matures, fee structures may evolve:
- Volume discounts for high-activity users
- Dynamic pricing based on Network conditions
- Additional fee types for new features
- Fee reductions as scale increases efficiency
Governance Participation
Network Token holders may have input on:
- Fee structure changes
- Revenue distribution ratios
- New fee implementations
- Network development priorities
Any significant fee changes would be announced well in advance and may require Network Token holder approval.
Comparing to Traditional Markets
Traditional VC/Private Equity
- Management fees: 2-2.5% annually
- Carry fees: 20% of profits
- Administrative costs: Various additional fees
- Limited liquidity: Difficult to exit investments
Personal Token Network
- Gas fees: Minimal transaction costs
- Secondary sales: 2% on sales only (not holdings)
- Equity fees: 0.1% dilution per fundraising round
- Enhanced liquidity: Active secondary market
The Network’s fee structure is designed to be more transparent and investor-friendly than traditional private market alternatives.
Fee Impact Examples
Let’s examine how fees affect different activities:
Fundraising Example
You raise $1M by selling 500,000 shares:
- Equity fee: 500 additional shares to Network (0.1%)
- Gas fee: ~$10 for transaction processing
- Total cost: Minimal impact on your fundraising
Investment Example
You invest $50,000 in another personal token:
- Gas fee: ~$5 for transaction processing
- No additional fees until you sell
- Total cost: 0.01% of investment
Secondary Sale Example
You sell $25,000 worth of shares:
- Secondary sales fee: $500 (2%)
- Gas fee: ~$3 for transaction
- Net proceeds: $24,497
- Total cost: 2.01% of sale value