πFee Structure
Catalyst App incorporates a fee system, serving several critical functions to ensure sustainability and growth. Here's a detailed breakdown of the fee structure and its rationale.
Fee Implementation
On Contributing Funds: The funding goal includes a 5% mark-up to be used to create a liquidity pool to enable trading of IPTs.
On Withdrawing Funds: A 5% exit fee is applied in case contribution is withdrawn.
Preminted IPTs: 5% of the IPTs are reserved through a pre-mint at the beginning of the funding and used to create a liquidity pool after the negotiation is completed and the IPTs are distributed to all the funders.
Fee Allocation
Successful Project Funding:
The mark-up from contributed ETH and preminted IPTs are used to create a liquidity pool after the negotiation phase, enabling IPT trading.
Unsuccessful Project Funding:
If a project does not reach its funding goal or the negotiation fails, the initial ETH contributions are paid back completely. However, any withdrawal fees accrued during the funding process are taken by Molecule.
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