Burning CFG with Fees

Centrifuge Governance Governance discussion
1

Is there a burn mechanism planned? It’s important for CFG holders to participate in the economics of the pools. Burn would be best and easiest way to reward holders as it benefits everyone equally, and is less risky as it does not require anyone to stake coins.

2

Hi jagx7. Thanks for your contribution to the Centrifuge governance. With each transaction a fraction of CFG (mCFG) is used and these fees go straight into the treasury. The amount of transactions will go up once Pools launch on Centrifuge chain

There was an adjustment in the fee structure already last autumn

3

Thanks. Looks like I’m a little late. But my 2 cents below.

  1. Fees paid in CFG.

  2. Structure
    a) 1/2% upfront structuring and set up fee
    b) 1/2% annual ongoing platform fee (paid monthly)
    c) X% Trading or transfer fee for investor trading or transferring of ownership.

  3. Upfront fee paid by asset manager, ongoing monthly platform fee paid out of interest payments made by investors, transfer/trading fee paid by investors

  4. Fees based on AUM and asset values.

  5. Minimum 50% of fees burned. The rest for ongoing development and maintenace of the platform. Raise % fees to make sure it supports both development and value of CFG.

  6. No insurance pool. The point of investors getting interest above and beyond the risk free rate is to pay them for the risk of loss.

4

Thanks for your valuable contribution. The proposal to implement protocol fees closed already

5

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