# Burning CFG with Fees **URL:** \ **Category:** Governance discussion\ **Created:** [February 15, 2023, 5:05pm UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155 "2023-02-15T17:05:51Z")\ **Posts on this page:** 5\ **Page:** 1
**Author:** ![jagx7](https://avatars.discourse-cdn.com/v4/letter/j/0ea827/32.png) [@jagx7](https://gov.centrifuge.io/u/jagx7)\ **Post date:** [February 15, 2023, 5:05pm UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155/1 "2023-02-15T17:05:51Z")
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. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [February 15, 2023, 5:09pm UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155/2 "2023-02-15T17:09:43Z")
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 > [@Poll: Increase transaction fees and implement token burn Sept 2022](https://gov.centrifuge.io/t/poll-increase-transaction-fees-and-implement-token-burn-sept-2022/4537): > > Hey everyone! Discussion about increasing transaction fees and implementing a token burn can be found on the [request for comments post](https://gov.centrifuge.io/t/rfc-increase-transaction-fees-on-centrifuge-chain-by-100x-and-use-the-fees-towards-a-token-burn/3723/). We are now at a stage that the parameters involved in the transaction fee increase and token burn rate can be voted on. There are a few questions that must be considered in this proposal, to repeat what @mikiquantum [posted](https://gov.centrifuge.io/t/rfc-increase-transaction-fees-on-centrifuge-chain-by-100x-and-use-the-fees-towards-a-token-burn/3723/18): Correct Split Rate: Out of the tx fee how much goes to the author and how much to the treasury? Correct Treasury Burn Rate: Out of the am… ---
**Author:** ![jagx7](https://avatars.discourse-cdn.com/v4/letter/j/0ea827/32.png) [@jagx7](https://gov.centrifuge.io/u/jagx7)\ **Post date:** [February 15, 2023, 5:28pm UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155/3 "2023-02-15T17:28:49Z")
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. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [February 16, 2023, 8:19am UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155/4 "2023-02-16T08:19:27Z")
Thanks for your valuable contribution. The proposal to implement protocol fees closed already > [@CP28 (GI): Centrifuge Protocol Fees](https://gov.centrifuge.io/t/cp28-gi-centrifuge-protocol-fees/5138/4): > > The OpenSquare Snapshot vote for this proposal has passed. Voted: 7.11M CFG Voters: 61 Thank you everyone for voting and for participating in the discussion. ---
**Author:** ![Tjure07](https://dub1.discourse-cdn.com/flex013/user_avatar/gov.centrifuge.io/tjure07/32/1039_2.png) [@Tjure07](https://gov.centrifuge.io/u/Tjure07)\ **Post date:** [February 16, 2023, 8:19am UTC](https://gov.centrifuge.io/t/burning-cfg-with-fees/5155/5 "2023-02-16T08:19:33Z")
Posted in another topic