Future Fee Mechanism on Jupiter Aggregator and the Role of DAO
Introduction
Jupiter Aggregator is a leading platform in the cryptocurrency ecosystem, aiming to provide users with the best prices available. Currently, fee deductions are applied to features such as limit orders and VA (Variable Annuity). However, with the development of the RFQ (Request for Quote) mechanism, it is planned that fee structures will also be applied to regular swap transactions in the future. This article delves into the sustainability of this new fee mechanism and the importance of DAO (Decentralized Autonomous Organization) in this process. Additionally, a proposed tier system for DAO is detailed.
Current Fee Mechanism
At present, Jupiter Aggregator charges users fees through features like limit orders and VA. These deductions are essential for the platform to sustain its operations and continue offering the best prices to its users. However, with the advancement of the RFQ mechanism, regular swap transactions will also be subject to fee deductions. This ensures that Jupiter, as an aggregator, not only provides the best prices but also enhances its revenue, thereby strengthening its sustainability.
Importance of DAO and the Proposed Tier System
For the fee mechanism to be sustainable, the active role of DAO in this process is crucial. As a community-governed structure, DAO can ensure that the fee system operates fairly and effectively. In this context, the proposed tier system for DAO aims to offer different rebate rates based on the amount of tokens staked by users. This system is designed to prevent genuine participants from being adversely affected by the fee structure.
Tier System Details
Below are the details of the proposed tier system, outlining token requirements and rebate rates:
| Tier | Token Requirement | Rebate Rate |
|---|---|---|
| 1 | 2,500 | 10% |
| 2 | 5,000 | 15% |
| 3 | 10,000 | 25% |
| 4 | 20,000 | 30% |
| 5 | 30,000 | 40% |
| 6 | 40,000 | 50% |
| 7 | 50,000 | 60% |
| 8 | 60,000 | 70% |
| 9 | 70,000 | 80% |
| 10 | 80,000 | 85% |
| 11 | 90,000 | 95% |
| 12 | 100,000 | 100% |
Explanations:
- Tier 1-3: Low token requirements are set to facilitate easy participation for users. Rebate rates start low and gradually increase in these tiers.
- Tier 4-6: Token requirements increase by 10,000 per tier, while rebate rates rise significantly. This encourages users to stake more tokens.
- Tier 7-12: In higher tiers, users can achieve high rebate rates by staking more tokens. Especially in Tiers 10-12, rebate rates increase substantially, providing up to 100% rebate. These levels ensure the sustainability of the DAO while fairly rewarding users.
Proposed Testing Process
It is recommended to initially test this tier system on the Limit Order and VA (Variable Annuity) features. This will allow us to observe whether the system is balanced and understand its impact on users. Feedback obtained during the testing phase can be used to make necessary adjustments, further enhancing the system.
Conclusion
The future fee mechanism planned by Jupiter Aggregator aims to enhance the platform’s sustainability while offering users a fair and incentivizing structure. The role of DAO and the proposed tier system are designed to reward genuine participants who will benefit the most from fee deductions. Successful implementation of these innovations will further solidify Jupiter Aggregator’s leading position in the cryptocurrency ecosystem.
