Fee Structure
A Transparent, On-Chain Model Designed to Strengthen the Protocol
The Web3Moon (W3M) protocol implements a non-negotiable, fixed-fee mechanism on every buy and sell transaction. This structure is hardcoded within the smart contract, ensuring that all economic flows are automated, tamper-resistant, and transparently auditable.
Rather than penalizing activity, W3M’s fee logic is engineered to enhance long-term price stability, grow protocol liquidity, and reward network contributors — all without relying on external market mechanics.
How Transaction Fees Are Distributed
Every buy or sell transaction triggers a flat 10% fee, automatically distributed on-chain:
| Allocation | Share | Description |
|---|---|---|
| Liquidity Reserve | 5% | Retained in the contract to reinforce internal liquidity and future-proof price support. |
| Ecosystem Pools | 2.5% | Programmatically distributed to stakeholder wallets according to predefined weights. |
| Referral Rewards | 2.5% | Automatically granted to referring wallets when applicable, fostering organic user acquisition. |
These fees are denominated in W3M (not USDT), and their on-chain distribution is performed without custodial intermediaries, delays, or approvals.
Why This Fee Architecture Works
W3M operates on a deterministic price curve:
The core pricing logic ensures that the token price is calculated from a fixed function of how many tokens have ever been minted — not how many are circulating.
Consequences of the Fee Model:
- When a user buys: USDT enters the protocol → more tokens minted →
totalMintedincreases → price steps up. - When a user sells: W3M is permanently burned → circulating supply drops → but price remains unchanged or increases.
- In both cases: The token price either rises or remains stable, never falling.
This design guarantees that protocol activity — regardless of direction — strengthens the price base.
Key Takeaways for Users
- Selling immediately after buying does not reduce the token’s price.
- Holding the token long-term exposes users to mathematically guaranteed price appreciation.
- All protocol fees remain within the system, directly funding on-chain liquidity and community alignment mechanisms.
Unlike vesting schedules, lock-up contracts, or penalty tiers, W3M’s approach to fees is:
Uniform. On-chain. Non-discriminatory. Predictable.
No wallets are exempt unless explicitly approved. All users interact under the same economic rules, enforced transparently by smart contract.
Why a Flat Fee Instead of Complex Mechanics?
In traditional DeFi, mechanisms such as vesting, time locks, or tiered penalty systems increase user friction and reduce participation.
Web3Moon replaces these with:
- A flat, universally applied fee, reducing cognitive load
- On-chain automatic distribution, removing execution risk
- A mathematical incentive structure, eliminating the need for behavioral nudges
Every transaction contributes to system integrity, not just speculation.