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Remittance Fee Levels — Sub-1 %, Zero, Negative

Status: Not Started
Priority: High
Last Updated: 2026-10-03
Contributors Welcome: Yes

What We Don’t Know

The remittance fee is not a protocol rule — it is set by the counterparties (the BCH seller, and at cash-out the merchant), who compete. The public claim centres on sub-1 % total (0.5 % seller + 0.5 % merchant in Phase 0) being normal, not exceptional. Open:

Can the total fee go sub-1 %, to 0, or negative?
What sets the equilibrium (capital cost, velocity, competition)?
Do merchants subsidise the remittance (accept 0/negative on the cash-out leg) to win the customer?
How does the fee vary by corridor and payment method?

Why It Matters

Fees are the primary attractor for senders and recipients (versus Western Union’s 5–10 %). Whether the market can hold sub-1 % — or better — is the core competitive claim. Industry (r/fintech and others) treats sub-1 % remittances as impossible; establishing it, or beating it, is the point.

Current Hypothesis

Sub-1 % is achievable where capital recycles fast (payment-first, high velocity) and sellers compete.
0 / negative is plausible where a merchant subsidises the cash-out to acquire the customer — the remittance is the door-opener; groceries/add-ons are the revenue (see the triple-dip, Merchant Journey).
The Phase-0 1 % is a bootstrap default, not a rule.

Bootstrap strategy (context)

The 0.5 % + 0.5 % figures were set early and deliberately as an aspirational target — a marketed claim, not a protocol constant. Phase 0 holds them low via founder-provided liquidity (Asgaya acts as the initial buyer/seller). Once organic growth is established, Asgaya extends to new corridors and payment methods, and the free market sets the fee.

Investigation Method

Measure the declared fee (listing) and the effective fee (fiat paid vs face) per corridor/method in Phase 0.
Track seller/merchant competition — do fees fall as sellers enter?
Look for sub-1 %, then 0/negative (subsidy) cases; document the conditions.
Model the equilibrium (capital cost, velocity, competition).
Reconcile with the sufficiency sub-questions below.

Success Criterion

Per-corridor/method fee distributions (declared + effective) across Phase 0, with at least one corridor demonstrating sub-1 % — and any 0 / negative / subsidised cases — plus the conditions under which each holds.

Phase 0 Trial Integration

Log the declared fee and the effective fee per transaction, per corridor/method; track seller/merchant entry and fee competition.

Contributor Guidance

Skills needed: market research, data analysis
Estimated effort: ongoing (Phase 0 data)
How to start: instrument the fee fields; collect per-corridor samples; watch for subsidy cases.

Seller Fee Sufficiency — is a given fee enough for a seller?
Merchant Spread Sufficiency — is a given fee enough for a merchant?
Bulletin Board — where sellers advertise their fee
Merchant Journey — the triple-dip (why a merchant subsidises)

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