3.10. Smart Fees
Last updated
Last updated
DeflationCoin is not designed to become a low-fee payment method. Stablecoins already fulfill that role effectively. The primary mission of DeflationCoin is to establish itself as the best savings asset, offering an alternative to government bonds, gold, and Bitcoin. For this reason, transaction fees are intentionally not low, they are designed to increase demand for coins and reduce their supply.
Fees will not be calculated in monetary equivalent, but as a percentage of the transfer amount. Each transaction will be accompanied by a fee of 5% of the total transfer amount. At first glance, it may seem that 5% is a lot, but it is less than the inflation in the United States in 2022, which was 8%. People have lost more than 8% of their savings with no prospect of increasing them.
Purchasing DeflationCoin without using the referral system.
Acquiring DeflationCoin through a referral link.
Let’s examine each scenario in detail below.
1% of the transferred amount is sent to the “Complete Burn” wallet, where the coins are permanently removed from circulation. This systematically reduces the circulating supply, intensifying deflation.
1% of the transferred amount is sent to the “General Pool” wallet for subsequent distribution among stakers, factoring in the X-multiplier. This motivates participants to stake their coins, preventing impulsive sales and reducing market supply.
The “General Pool” wallet is excluded from the daily coin-burning mechanism.
1% of the transferred amount is sent to the “Technical Development” wallet, which is distributed among developers who have made the most significant contributions to the project. After funds are transferred from this wallet to a developer's personal wallet, the coins are automatically locked in Smart-Staking for 12 years. Decisions regarding fund allocation are made through voting based on the three-tier “PoD” mechanism (details in Section 3.17).
The “Technical Development” wallet is excluded from the daily coin-burning mechanism.
2% of the coins are transferred to the “Centralized Marketing” wallet, where the allocation of funds is determined through a vote based on the two-level “PoD” mechanism (details provided in Section 3.17). This mechanism systematically increases the demand for coins, positively influencing the value of DeflationCoin.
The “Centralized Marketing” wallet is excluded from the daily coin-burning mechanism.
Important!
The 5% fee is only applied during the sale of coins on exchanges or their transfer to external wallets. Internal transfers within a single account are not subject to the 5% fee.
Before distributing the budget allocated for fees (5% of the transaction), the required share is first deducted from this amount for technical support of the network. The remaining amount is distributed equally between the 5 elements described above.
2.25% of the coins are transferred to the "Complete Burn" wallet, where they are permanently removed from circulation. This element systematically reduces the circulating supply of coins, intensifying deflation.
When Wallet A is created using the referral link of Wallet N, 2.25% of the coins from any transaction made by Wallet A are transferred to Wallet N as a reward for participating in the referral program. If Wallet A is not registered via a referral link, the distribution of smart commissions will follow the first scenario described earlier.
If Wallet A is created via the referral link of Wallet N, all future transactions of Wallet A will receive a 0.5% discount on the standard 5% commission. As a result, the commission for Wallet A will be reduced to 4.5%. This element, combined with Element 2, enhances the effectiveness of the partner marketing program.
In 2022, the average annual inflation rate across 190 countries ranged from 15% to 25%.
Even in economically stable countries like Germany, inflation reached 8.5%.
In contrast, Venezuela saw an inflation rate of 400%, Zimbabwe hit 172%, and Argentina reached 98.6%.
For people in high-inflation countries, the situation is truly tragic. They did not choose to be born in unstable economies but are now trapped in financial crises. In extreme cases, they cannot afford basic necessities like food and medicine. Poverty becomes a constant companion, and the future appears gloomy and uncertain.
Venezuela — 94% of the population lives below the poverty line, more than 3 million children suffer from malnutrition, and child mortality rates are rising due to a lack of medicine and doctors.
Sudan — Inflation exceeds 63%, and more than 3 million children do not attend school, losing opportunities for education and a path out of poverty.
Zimbabwe — Unemployment reaches 90%, leaving almost the entire population without the opportunity to earn a living and forcing people to survive without the slightest hope of a stable future.
Against the backdrop of such large-scale problems, the 5% smart fee seems negligible.
People in these countries did nothing wrong; they did not choose their circumstances but found themselves trapped in the political and economic catastrophes created by the system. Every year, citizens around the world lose their savings due to inflation, which in many cases exceeds 5% annually.
Small smart fees act as an enhancing mechanism for the deflationary system, contributing to the systematic reduction in the number of coins in circulation while simultaneously stimulating demand for them. This mechanism ensures the gradual increase in the cryptocurrency’s value, making DeflationCoin a reliable tool for protecting savings from the instability of inflation-prone fiat currencies.
The stock market wisdom, “The stock market is a device for transferring money from the impatient to the patient, ( Warren Buffett)” serves as a guiding principle for the smart fees system:
Patient investors, who avoid excessive activity and hold their coins in Smart-Staking for the long term, enjoy steady returns through dividends and coin value appreciation.
In contrast to inflation, smart fees do not decline capital for passive investors. Instead, they contribute to its growth by leveraging the activity of impatient participants, whose frequent transactions effectively increase the profits of patient investors.
