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Seller Fee Sufficiency

Status: Not Started
Priority: High
Last Updated: 2026-05-29
Contributors Welcome: Yes

What We Don’t Know

Is the 0.5% seller fee sufficient to make BCH selling economically attractive given capital costs, risk, and operational overhead?

Why It Matters

If 0.5% is too low, sellers won’t participate and the system lacks liquidity. If it’s set correctly, sellers achieve profitable capital recycling.

Current Hypothesis

0.5% fee on high-velocity capital (360% annual turnover) provides attractive returns comparable to other DeFi opportunities.

Investigation Method

  1. Model seller economics at various capital recycling speeds
  2. Compare 0.5% returns to competing investment opportunities
  3. Survey potential sellers about minimum acceptable returns
  4. Calculate break-even fee rate

Success Criterion

Demonstrated seller interest at 0.5% fee level during Phase 0 trials, with measured capital recycling achieving target velocity.

Phase 0 Trial Integration

Track seller retention, capital deployed, and recycling frequency.

Contributor Guidance

Skills needed: Financial modeling, market research
Estimated effort: 3-5 hours
How to start: Build seller economics spreadsheet model

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