FeeFi (Fee Financing)

Generally, node monopolizes fees on blockchain mainnet. FeeFi is an important component of the Protocon Network's token economy, providing a structure in which entire ecosystem participants share commission revenue through liquidity provision.

Through FeeFi, we intend to present a solution to the three issues related to fees,
1) Adequacy of fees 2) Volatility 3) fee payment usability(UX) issues that have been raised as an issue in the blockchain industry.

What is FeeFi?

Feefi is a new way to solve the problems surrounding fees  by using Defi financial techniques for fees.

With a methodology called FeeFi, we will implement the added value created by the blockchain network so that the entire ecosystem can share.
FeeFi plays two roles in the Protocon Network
  • Let users solve all the issues related to the fee and share the fee income
  • Encourage users to engage directly in market conditioning by token staking

How FeeFi works

  • Users deposit PEN tokens on FeeFi to create a PEN staking pool
  • Paid dApp token fees are exchanged for PEN tokens in the staking pool
  • Distribute revenue from exchanged dApp token fees to staking depositors.
  • The exchanged PEN tokens are distributed at 40% node operator, 50% liquidity provider, and 10% commons budget
  • Staking pool depositors are granted with the membership and the right to participate in the ‘Congress’, the highest decision-making body

Effects of FeeFi

Allow users to pay fees with dApp tokens without obtaining mainnet tokens
It is possible to use the blockchain as a 'service' by maintaining a constant fee based on the fiat currency (USD)
The added value created by the blockchain, such as rewards and fees, is distributed to all participants in the ecosystem
Establishing a staking structure that takes into account the entire ecosystem rather than node-centered architecture (implementing PBFT Algorithm that does not rely on equity)

Benefits of FeeFi Staking

  • Additional financial models can be developed based on deposited funds
  • Providing token depositors with the right to participate in the initial dApp project (PEN token holding premium)
  • PEN tokens and various dApp tokens are constantly exchanged through FeeFi to share profits with the community