Fee Design
Why 3.5%? How fees power deflation and the buyback mechanism.
Core Principle: Lock > Transfer
IFR is not a trading token. The model is based on:
- Buy once
- Lock once
- Use benefits permanently
Transfers happen rarely — when buying, when locking, when unlocking. Not daily. That is why 3.5% is sustainable and intentional.
Fee Breakdown
| Fee | Destination | Purpose |
|---|---|---|
| 2.0% | Burn (sender side) | Permanent deflation |
| 0.5% | Burn (recipient side) | Permanent deflation |
| 1.0% | BuybackVault | Liquidity strengthening |
| 3.5% | Total | 2.5% burned + 1% buyback |
Hard cap: Total fees can never exceed 5% (500 bps). This is enforced in the smart contract via MAX_FEE_BPS and cannot be changed by any governance action.
Fee-Exempt Addresses
Protocol-internal transfers incur zero fees. These addresses are fee-exempt:
| Address | Why Exempt? |
|---|---|
| IFRLock | Lock/Unlock must be fee-free (users get back exactly what they locked) |
| LiquidityReserve | Internal protocol transfers |
| BuybackVault | Buyback logic without loss |
| BurnReserve | Burn mechanism |
| PartnerVault | Reward payouts (after Governance Proposal #3) |
| DEX Router | Uniswap V2 swaps without double-fee |
All exempt addresses are on-chain transparent and only changeable via Governance proposals with a 48-hour timelock.
CEX Listing Strategy
Fee-on-transfer tokens have elevated CEX requirements:
- Transparency: Fee mechanism fully documented (check)
- No hidden fees: Everything on-chain (check)
- Exchange coordination: CEX wallets can be made fee-exempt via governance
| Phase | Listing Type |
|---|---|
| Phase 0 | DEX only (Uniswap V2) |
| Phase 2+ | CEX outreach after mainnet & audit |
MEV & Slippage Guide
When trading IFR on Uniswap V2:
Recommended slippage: Set to at least 4% (3.5% fee + AMM slippage). Lower values may cause transactions to revert.
// Recommended Uniswap V2 settings for IFR
Slippage Tolerance: 4.0% (minimum)
Transaction Deadline: 20 minutes
Gas: Standard- The FeeRouter contract provides optimized routing with correct parameters
- Alternatively, use the Governance Dashboard for direct swaps
- Fee-on-transfer is fully DEX-compatible but requires correct slippage settings